Problem 12 On December 31, 2019, Magtuba Company finished consultation services and accepted in exchange a promissory note with a face value of P300,000, a due date of December 31, 2022, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the drcumstances, the note is considered to have an appropriate imputed rate of interest of 10%. 13. The service revenue to be recognized for the year ended December 31, 2019 is 14. The carrying amount of the note receivable as of December 31, 2020 is

Problem 12 On December 31, 2019, Magtuba Company finished consultation services and accepted in exchange a promissory note with a face value of P300,000, a due date of December 31, 2022, and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the drcumstances, the note is considered to have an appropriate imputed rate of interest of 10%. 13. The service revenue to be recognized for the year ended December 31, 2019 is 14. The carrying amount of the note receivable as of December 31, 2020 is

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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Question

Problem 12
On December 31, 2019, Magtuba Company finished consultation services and accepted in
exchange a promissory note with a face value of P300,000, a due date of December 31, 2022,
and a stated rate of 5%, with interest receivable at the end of each year. The fair value of the
services is not readily determinable and the note is not readily marketable. Under the
drcumstances, the note is considered to have an appropriate imputed rate of interest of 10%.
13. The service revenue to be recognized for the year ended December 31, 2019 is
14. The carrying amount of the note receivable as of December 31, 2020 is

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