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Problem 6-2 On January 1, 2020, ORIENTAL CO. acquired inventory with a list price of P800,000 and a cash price of P497,380 by issuing a 3-year P600,000 noninterest bearing note payable. Principal is due in equal payments every December 31 beginning December 31, 2020. The effective interest rate is 10% Required: Prepare the following: 1. Amortization table of the note payable 2. Journal entries to record the transactions in 2020.

Problem 6-2 On January 1, 2020, ORIENTAL CO. acquired inventory with a list price of P800,000 and a cash price of P497,380 by issuing a 3-year P600,000 noninterest bearing note payable. Principal is due in equal payments every December 31 beginning December 31, 2020. The effective interest rate 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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Problem 6-2 On January 1, 2020, ORIENTAL CO. acquired inventory with a list price of P800,000 and a cash price of P497,380 by issuing a 3-year P600,000 noninterest bearing note payable. Principal is due in equal payments every December 31 beginning December 31, 2020. The effective interest rate is 10% Required: Prepare the following: 1. Amortization table of the note payable 2. Journal entries to record the transactions in 2020.
Transcribed Image Text:Problem 6-2 On January 1, 2020, ORIENTAL CO. acquired inventory with a list price of P800,000 and a cash price of P497,380 by issuing a 3-year P600,000 noninterest bearing note payable. Principal is due in equal payments every December 31 beginning December 31, 2020. The effective interest rate is 10% Required: Prepare the following: 1. Amortization table of the note payable 2. Journal entries to record the transactions in 2020.
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