On January 1, 2020, Alpha Company issued a noninterest-bearing note for a piece of equipment acquired at P500,000. Alpha Company paid a down payment of P100,000 and issued the note for the remaining P400,000 payable in installments of P100,000 every December 31. The cash price of the equipment is P380,000. The entity does not account for financial instruments using the fair value option. The entry to record this transaction will involve a?
On January 1, 2020, Alpha Company issued a noninterest-bearing note for a piece of equipment acquired at P500,000. Alpha Company paid a down payment of P100,000 and issued the note for the remaining P400,000 payable in installments of P100,000 every December 31. The cash price of the equipment is P380,000. The entity does not account for financial instruments using the fair value option. The entry to record this transaction will involve a?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Alpha Company issued a noninterest-bearing note for a piece of equipment acquired at P500,000. Alpha Company paid a down payment of P100,000 and issued the note for the remaining P400,000 payable in installments of P100,000 every December 31. The cash price of the equipment is P380,000. The entity does not account for financial instruments using the fair value option. The entry to record this transaction will involve a?
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