On January 1, 2021, Aloha Co. received the following note: Face amount P 1,000,000 Effective interest 18% Stated interest 0% The note is due in four equal annual installments. The first installment is due on December 31, 2021. The carrying value of the note at initial recognition is_______? . Do not round off your present value factors but round off your final answer to two decimal places.
On January 1, 2021, Aloha Co. received the following note: Face amount P 1,000,000 Effective interest 18% Stated interest 0% The note is due in four equal annual installments. The first installment is due on December 31, 2021. The carrying value of the note at initial recognition is_______? . Do not round off your present value factors but round off your final answer to two decimal places.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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On January 1, 2021, Aloha Co. received the following note:
Face amount P 1,000,000
Effective interest 18%
Stated interest 0%
The note is due in four equal annual installments. The first installment is due on December 31, 2021. The carrying value of the note at initial recognition is_______? . Do not round off your present value factors but round off your final answer to two decimal places.
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