On January 1, 2021, More Co. received a 3-year, noninterest bearing note of P900,000 in exchange for machinery with historical cost of P1,000,000 and accumulated depreciation of P200,000. The note is due on December 31, 2023. The effective interest rate is 12%. The present value of 1 at 12% for 3 periods is 0.7118. Requirements: 1. Prepare the amortization table. 2. Provide all the necessary journal entries.

On January 1, 2021, More Co. received a 3-year, noninterest bearing note of P900,000 in exchange for machinery with historical cost of P1,000,000 and accumulated depreciation of P200,000. The note is due on December 31, 2023. The effective interest rate is 12%. The present value of 1 at 12% for 3 periods is 0.7118. Requirements: 1. Prepare the amortization table. 2. Provide all the necessary journal entries.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....

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