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

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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