On January 1, 2021, Jin Company sold equipment at a cost of P400,000 The consideration is a noninterest-bearing note. Related data of the note: The annual collection for three periods is P200,000 payable every start of the year beginning January 1, 2021. The effective rate is 10% The present value of an ordinary annuity of 1 for three periods at 10% is 2.4869. The present value of an annuity of 1 in advance for three periods at 10% is 2.7355. What is the unearned interest income on January 1, 2021?
On January 1, 2021, Jin Company sold equipment at a cost of P400,000 The consideration is a noninterest-bearing note. Related data of the note: The annual collection for three periods is P200,000 payable every start of the year beginning January 1, 2021. The effective rate is 10% The present value of an ordinary annuity of 1 for three periods at 10% is 2.4869. The present value of an annuity of 1 in advance for three periods at 10% is 2.7355. What is the unearned interest income on January 1, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2021, Jin Company sold equipment at a cost of P400,000
The consideration is a noninterest-bearing note.
Related data of the note:
The annual collection for three periods is P200,000 payable every start of the year beginning January 1, 2021. The effective rate is 10%
The present value of an ordinary annuity of 1 for three periods at 10% is 2.4869.
The present value of an annuity of 1 in advance for three periods at 10% is 2.7355.
What is the unearned interest income on January 1, 2021?
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