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Problem 6-1 On January 1, 2020, AKLAN CO. acquired a machine from ANTIQUE CO. In lieu of cash payment, Aklan gave Antique a 3-year P600,000, 3% note payable. Principal is due annually every December 31. The prevailing interest rate of this type of note is 10%. Required: Prepare the following: 1. Amortization table of the note payable. 2. Journal entries to record the transactions in 2020.

Problem 6-1 On January 1, 2020, AKLAN CO. acquired a machine from ANTIQUE CO. In lieu of cash payment, Aklan gave Antique a 3-year P600,000, 3% note payable. Principal is due annually every December 31. The prevailing interest rate of this type of note is 10%. Required: Prepare the following: 1. Amortization table of the note payable. 2. Journal entries to record the transactions in 2020.

FINANCIAL ACCOUNTING
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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EXERCISES Problem 6-1 On January 1, 2020, AKLAN CO. acquired a machine from ANTIQUE CO. In lieu of cash payment, Aklan gave Antique a 3-year P600,000, 3% note payable. Principal is due annually every December 31. The prevailing interest rate of this type of note is 10%. Exercises Required: Prepare the following: 1. Amortization table of the note payable. 2. Journal entries to record the transactions in 2020.
Transcribed Image Text:EXERCISES Problem 6-1 On January 1, 2020, AKLAN CO. acquired a machine from ANTIQUE CO. In lieu of cash payment, Aklan gave Antique a 3-year P600,000, 3% note payable. Principal is due annually every December 31. The prevailing interest rate of this type of note is 10%. Exercises Required: Prepare the following: 1. Amortization table of the note payable. 2. Journal entries to record the transactions in 2020.
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