On September 12, 2021, an entity received a 120-day, 9% note for P50,000 for an overdue account from a customer. The entity uses an accounting year that ends on December 31. Which of the following statements is true? Use 360-day year. A. The maturity date of the note is January 12, 2022. B. The maturity value of the note is P51,500. C. Accrued interest on the note at December 31, 2021 is P1,375. a. A, B, and C b. A and B only c. B and C only d. B only
On September 12, 2021, an entity received a 120-day, 9% note for P50,000 for an overdue account from a customer. The entity uses an accounting year that ends on December 31. Which of the following statements is true? Use 360-day year. A. The maturity date of the note is January 12, 2022. B. The maturity value of the note is P51,500. C. Accrued interest on the note at December 31, 2021 is P1,375. a. A, B, and C b. A and B only c. B and C only d. B only
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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29.On September 12, 2021, an entity received a 120-day, 9% note for P50,000 for an overdue account from a customer. The entity uses an accounting year that ends on December 31.
Which of the following statements is true? Use 360-day year.
A. The maturity date of the note is January 12, 2022.
B. The maturity value of the note is P51,500.
C. Accrued interest on the note at December 31, 2021 is P1,375.
Which of the following statements is true? Use 360-day year.
A. The maturity date of the note is January 12, 2022.
B. The maturity value of the note is P51,500.
C. Accrued interest on the note at December 31, 2021 is P1,375.
a. A, B, and C
b. A and B only
c. B and C only
d. B only
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