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SLEX Company purchased a machine with a cash price of P350,000. SLEX gave the following as payment:                                                                     ·       Cash- P100,000 ·       Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000                          ·       SLEX 1,000 ordinary shares, P100 par (fair value P130)- P100,000                                                             How much is the discount on notes payable to be recorded on the date of purchase?

SLEX Company purchased a machine with a cash price of P350,000. SLEX gave the following as payment:                                                                     ·       Cash- P100,000 ·       Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000                          ·       SLEX 1,000 ordinary shares, P100 par (fair value P130)- P100,000                                                             How much is the discount on notes payable to be recorded on the date of purchase?

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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45. SLEX Company purchased a machine with a cash price of P350,000. SLEX gave the following as payment:                                                                    

·       Cash- P100,000

·       Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000                         

·       SLEX 1,000 ordinary shares, P100 par (fair value P130)- P100,000

                                                           
How much is the discount on notes payable to be recorded on the date of purchase?

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