On July 1, 2002, Riviera Manufacturing Co. issued a five-year note payable with a face amount of P250,000 and an interest rate of 10 percent. The terms of the note require Riviera to make five annual payments of P50,000 plus accrued interest, with the first payment due June 30, 2003. With respect to the note, the current liabilities section of Riviera's December 31, 2002, balance sheet should include a. 12,500 b. 50,000 c. 62,500 d. 75,000
On July 1, 2002, Riviera Manufacturing Co. issued a five-year note payable with a face amount of P250,000 and an interest rate of 10 percent. The terms of the note require Riviera to make five annual payments of P50,000 plus accrued interest, with the first payment due June 30, 2003. With respect to the note, the current liabilities section of Riviera's December 31, 2002, balance sheet should include a. 12,500 b. 50,000 c. 62,500 d. 75,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2002, Riviera Manufacturing Co. issued a five-year note payable with a face amount of P250,000 and an interest rate of 10 percent. The terms of the note require Riviera to make five annual payments of P50,000 plus accrued interest, with the first payment due June 30, 2003. With respect to the note, the current liabilities section of Riviera's December 31, 2002, balance sheet should include
a. 12,500
b. 50,000
c. 62,500
d. 75,000
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