On january 1, 2020, scatter co. acquired inventory with a list price of p1,300,000 and a cash price of p994,760 by issuing p1,200,000, noninterest bearing note payable. principal is due in three equal payments every december 31 beginning on december 31, 2020. the effective rate of interest interpolated for the cash price is 10%. • how much is the carrying amount of the note on initial recognition? • how much is the interest expense for 2020? •how much is the carrying amount of the note on decemver 31, 2020?
On january 1, 2020, scatter co. acquired inventory with a list price of p1,300,000 and a cash price of p994,760 by issuing p1,200,000, noninterest bearing note payable. principal is due in three equal payments every december 31 beginning on december 31, 2020. the effective rate of interest interpolated for the cash price is 10%. • how much is the carrying amount of the note on initial recognition? • how much is the interest expense for 2020? •how much is the carrying amount of the note on decemver 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On january 1, 2020, scatter co. acquired inventory with a list price of p1,300,000 and a cash price of p994,760 by issuing p1,200,000, noninterest bearing note payable. principal is due in three equal payments every december 31 beginning on december 31, 2020. the effective rate of interest interpolated for the cash price is 10%.
• how much is the carrying amount of the note on initial recognition?
• how much is the interest expense for 2020?
•how much is the carrying amount of the note on decemver 31, 2020?
•how much is the noncurrent portion of the note on december 31, 2020?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education