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Problem 6-5 (IAA) Persia Company is a dealer in equipment. On January 1, 2023, the entity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2023. The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods PV of an ordinary annuity of 1 at 8% for 5 periods Required: 0.68 3.99 1. Prepare all journal entries for 2023. 2. Determine the carrying amount of note receivable on December 31, 2023.

Problem 6-5 (IAA) Persia Company is a dealer in equipment. On January 1, 2023, the entity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2023. The market interest rate for similar notes was 8%. PV of 1 at 8% for 5 periods PV of an ordinary annuity of 1 at 8% for 5 periods Required: 0.68 3.99 1. Prepare all journal entries for 2023. 2. Determine the carrying amount of note receivable on December 31, 2023.

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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Decer Problem 6-5 (IAA) Persia Company is a dealer in equipment. On January 1, 2023, the entity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2023. The market interest rate for similar notes was 8%. 0.68 3.99 PV of 1 at 8% for 5 periods PV of an ordinary annuity of 1 at 8% for 5 periods Required: 1. Prepare all journal entries for 2023. 2. Determine the carrying amount of note receivable on December 31, 2023. ATODA
Transcribed Image Text:Decer Problem 6-5 (IAA) Persia Company is a dealer in equipment. On January 1, 2023, the entity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of P500,000. The first payment was made on December 31, 2023. The market interest rate for similar notes was 8%. 0.68 3.99 PV of 1 at 8% for 5 periods PV of an ordinary annuity of 1 at 8% for 5 periods Required: 1. Prepare all journal entries for 2023. 2. Determine the carrying amount of note receivable on December 31, 2023. ATODA
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