Problem: ABC Company issued a promissory note to RCBC Bank. Details from the promissory note are as follows: Date of note: November 1, 2020 Term of note: 180 days Principal: P120,000 Interest rate: 12% Determine the following: 1. What is the account to be credited on the adjusting entry on December 31, 2020? | 2. How much is the amount to be credited on December 31, 2020? 3. How much is the total interest expense for the full term of the note.

Problem: ABC Company issued a promissory note to RCBC Bank. Details from the promissory note are as follows: Date of note: November 1, 2020 Term of note: 180 days Principal: P120,000 Interest rate: 12% Determine the following: 1. What is the account to be credited on the adjusting entry on December 31, 2020? | 2. How much is the amount to be credited on December 31, 2020? 3. How much is the total interest expense for the full term of the note.

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: ABC Company issued a promissory note to RCBC Bank.
Details from the promissory note are as follows:
Date of note: November 1, 2020
Term of note: 180 days
Principal: P120,000
Interest rate: 12%
Determine the following:
1. What is the account to be credited on the adjusting entry on December
31, 2020?
2. How much is the amount to be credited on December 31, 2020?
3. How much is the total interest expense for the full term of the note.

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