On October 1, 2021, Chrysanthemum Co. purchased equipment by issuing a four-year, 9% promissory note with face value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022. What is the carrying value of the note on December 31, 2023? a. 842,812.50 b. 1,500,000 c. 750,000 d. 766,875 How much is the interest expense for the year 2023? a. 67,500 b. 92,812.50 c. 101,250 d. 16,875 How much is the interest expense for the year 2022? a. 135,000 b. 101,250 c. 126,562.50 d. 25,312.50 What amount shall be reported as interest payable on December 31, 2022? a.101,250 b. Zero c.126,562.50 d. 25,312.50

On October 1, 2021, Chrysanthemum Co. purchased equipment by issuing a four-year, 9% promissory note with face value of P1,500,000. The note is payable in four equal annual installments of P375,000 plus accrued interest on the unpaid balance every September 30 starting September 30, 2022. What is the carrying value of the note on December 31, 2023? a. 842,812.50 b. 1,500,000 c. 750,000 d. 766,875 How much is the interest expense for the year 2023? a. 67,500 b. 92,812.50 c. 101,250 d. 16,875 How much is the interest expense for the year 2022? a. 135,000 b. 101,250 c. 126,562.50 d. 25,312.50 What amount shall be reported as interest payable on December 31, 2022? a.101,250 b. Zero c.126,562.50 d. 25,312.50

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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