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Required: a. Prepare journa

Required: a. Prepare journa

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 1 On Jan. 1, 2020, Aldama Company has a note payable to bank in the amount of Php2,800,000. Transactions during 2020 and other information relating to liabilities are: - Principal amount of the note payable to bank is Php2.8M and bears a 12% interest. The note is dated April 1, 2019 and is payable in four equal annual installments beginning April 1, 2020. The first principal and interest payment was made on April 1, 2020. - On July 1, 2020, the entity issued for Php1,774,000 a Php2,000,000 face amount note to a wealthy shareholder. The note was dated July 1, 2020 and matures on July 1, 2021. No explicit interest rate is stated in the note and the entire face amount of the note payable is at maturity date Required: a. Prepare journal entries for 2020
Transcribed Image Text:Problem 1 On Jan. 1, 2020, Aldama Company has a note payable to bank in the amount of Php2,800,000. Transactions during 2020 and other information relating to liabilities are: - Principal amount of the note payable to bank is Php2.8M and bears a 12% interest. The note is dated April 1, 2019 and is payable in four equal annual installments beginning April 1, 2020. The first principal and interest payment was made on April 1, 2020. - On July 1, 2020, the entity issued for Php1,774,000 a Php2,000,000 face amount note to a wealthy shareholder. The note was dated July 1, 2020 and matures on July 1, 2021. No explicit interest rate is stated in the note and the entire face amount of the note payable is at maturity date Required: a. Prepare journal entries for 2020
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