on March 1, 20x1 Nick Co. issued a P6000, 12%note dated January 1, 20x1 in exchange an outstanding account payable of P6,000. The principal and the 6-month interest on the nore due on July 1, 20x1. On initial recognition, which of the following acounts increased? a. Prepaid Interest b. interest payable c. discount on nte payable d. interest expense

on March 1, 20x1 Nick Co. issued a P6000, 12%note dated January 1, 20x1 in exchange an outstanding account payable of P6,000. The principal and the 6-month interest on the nore due on July 1, 20x1. On initial recognition, which of the following acounts increased? a. Prepaid Interest b. interest payable c. discount on nte payable d. interest expense

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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