PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October 1, 2019, and payable in three equal annual payments of ₱1,200,000 plus interest. The first interest and principal payment were made on October 1, 2020. On June 30, 2021, what amount should be reported as accrued interest payable for this note? a. ₱ 180,000 b. ₱ 60,000 c. ₱ 90,000 d. ₱ 270,000
PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October 1, 2019, and payable in three equal annual payments of ₱1,200,000 plus interest. The first interest and principal payment were made on October 1, 2020. On June 30, 2021, what amount should be reported as accrued interest payable for this note? a. ₱ 180,000 b. ₱ 60,000 c. ₱ 90,000 d. ₱ 270,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PINK Company reported a 10% note payable of ₱3,600,000 on June 30, 2021. The note is dated October 1, 2019, and payable in three equal annual payments of ₱1,200,000 plus interest. The first interest and principal payment were made on October 1, 2020. On June 30, 2021, what amount should be reported as accrued interest payable for this note?
a. ₱ 180,000
b. ₱ 60,000
c. ₱ 90,000
d. ₱ 270,000
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