On January 1, 2021, Palalay Bus Co. received a 4-year, noninterest bearing note of P1,000,000 in exchange for land with carrying amount of P400,000. The note is due on December 31, 2024. The effective interest rate is 12%. The present value of 1 at 12% for 4 periods is 0.6355. Requirements: 1. Prepare the amortization table. 2. Provide all the necessary journal entries.
On January 1, 2021, Palalay Bus Co. received a 4-year, noninterest bearing note of P1,000,000 in exchange for land with carrying amount of P400,000. The note is due on December 31, 2024. The effective interest rate is 12%. The present value of 1 at 12% for 4 periods is 0.6355. Requirements: 1. Prepare the amortization table. 2. Provide all the necessary journal entries.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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On January 1, 2021, Palalay Bus Co. received a 4-year, noninterest bearing note of
P1,000,000 in exchange for land with carrying amount of P400,000. The note is due on
December 31, 2024. The effective interest rate is 12%. The present value of 1 at 12% for
4 periods is 0.6355.
Requirements:
1. Prepare the amortization table.
2. Provide all the necessary
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