On January 1, 20x1, SAUCY BOLD Co. acquired a machine by issuing a 3-year, 3%, P4,800,000 note payable. Principal and interests are due in three equal annual installments starting December 31, 20x1. The prevailing interest rate for this type of note is 12%. How much is the carrying amount of the note on initial recognition?
On January 1, 20x1, SAUCY BOLD Co. acquired a machine by issuing a 3-year, 3%, P4,800,000 note payable. Principal and interests are due in three equal annual installments starting December 31, 20x1. The prevailing interest rate for this type of note is 12%. How much is the carrying amount of the note on initial recognition?
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...
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