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On January 1, 2019, Pag-asa Co. sold a machine to Estudyante Co.. In lieu of cash payment, Estudyante Co. gave Pag-asa Co. 2-year, P200,000, 12.4% note. The note requires interest to be paid semi-annually on June 30 and December 31.The machinery has a cost of P500,000 and accumulated depreciation as of January 1, 2019 of P320,000. The prevailing rate of interest for a note of this type is 16.7% and the principal amount of the note is to be paid in four equal semi-annual installments every June 30 and December 31. What is the current portion of the notes receivable, December 31, 2019?   a. 96,100 b. 96,600 c. 97,100 d. 98,600

On January 1, 2019, Pag-asa Co. sold a machine to Estudyante Co.. In lieu of cash payment, Estudyante Co. gave Pag-asa Co. 2-year, P200,000, 12.4% note. The note requires interest to be paid semi-annually on June 30 and December 31.The machinery has a cost of P500,000 and accumulated depreciation as of January 1, 2019 of P320,000. The prevailing rate of interest for a note of this type is 16.7% and the principal amount of the note is to be paid in four equal semi-annual installments every June 30 and December 31. What is the current portion of the notes receivable, December 31, 2019?   a. 96,100 b. 96,600 c. 97,100 d. 98,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2019, Pag-asa Co. sold a machine to Estudyante Co.. In lieu of cash payment, Estudyante Co. gave Pag-asa Co. 2-year, P200,000, 12.4% note. The note requires interest to be paid semi-annually on June 30 and December 31.The machinery has a cost of P500,000 and accumulated depreciation as of January 1, 2019 of P320,000. The prevailing rate of interest for a note of this type is 16.7% and the principal amount of the note is to be paid in four equal semi-annual installments every June 30 and December 31. What is the current portion of the notes receivable, December 31, 2019?

 

a. 96,100

b. 96,600

c. 97,100

d. 98,600

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