On january 1 20x1 j&j co issues a non interest bearing note of 3,000,000 10. On 1, 20x1, Co. a 12%1. On January 1, 20x1, Bark, a oHint: Recall the of that is to receivable.payable of The and the interestdated 1, in for an outstanding accouthe note are due on July 1, On wh10. On March 1, 20x1, Nickelodeon Co. issued adated January 1, 20x1 in exchange for an88Notes PayableRequirements:a. Prepare tb. How muof the following accounts increased?a. Prepaid interestb. Interest payablec. Discount on note payableC.d. Interest expenseHow m20x1?4. HelpreconstFace amou1PROBLEM 3: EXERCISESDiscount onote of P2,000,000 in exchange for equipment. The note ieon December 31, 20x3. The effective interest rate is 16%Effective inTerm of thDateRequirement: Provide all the entries during the term of the note1/1/x112/31/x12. On January 1, 20x1, J&J Co. issues a noninterest-bearing noof P3,000,000 in exchange for equipment. The note is due12/31/x3three equal annual installments every December 31. T (9)12/31/x2effective interest rate is 18%.5. ThRequirements:a. Compute for current and noncurrent portions of the nopayable on December 31, 20x1.b. Compute for the balance of discount on note payable oDecember 31, 20x1 and determine how this amountallocated to the current and noncurrent portions of the note.c. Provide all the entries during the term of the note payable.pareed3. On January 1, 20x1, Drive Co. paid cash of P200,000 aissued a noninterest-bearing note P2,000,000 in exchange 10vehicle. The note is due in four equal aPRfirst installment infor b. Interest payabon 31, 20x3. The rate is 16%.Requirement: all the the of the note.2 On 1, J&J Co. a noninterest-bearing nonote of in for equipment. The note is du1. On 1, Inc. issues a noninterest-bearinof in for The note is dueHelHint: the concept of accruE Recall the concept of "Pre-acquisition accrireconstThe note jsFace amounPROBLEM 3: EXERCISESDiscount orEffective innote of P2,000,000 in exchange for equipment.Term of thDateRequirement: Provide all the entries during the term of the no2 On January 1, 20x1, J&J Co. issues a noninterest-bearingfor1/1/x112/31/x1three equal annual installments every December 31effective interest rate is 18%.12/31/x212/31/x3(6).5. TheRequirements:a Compute for current and noncurrent portions of the Depayable on December 31, 20x1.b. Compute for the balance of discount on note payableDecember 31, 20x1 and determine how this amountallocated to the current and noncurrent portions of the note.c. Provide all the entries during the term of the note payable.paypayrepSTwaRequire3. On January 1, 20x1, Drive Co. paid cash of P200,000 andissued a noninterest-bearing note P2,000,000 in exchange for avehicle. The note is due in four equal annual installments. Thefirst installment is due on January 1, 20x1 and the succeedinginstallments are due every 1st of January. The prevailing rateof interest for this type of note is 12%.PROEar2.

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Answered: On january 1 20x1 j&j co issues a non…

Business

Accounting

On january 1 20x1 j&j co issues a non interest bearing note of 3,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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