The business receives a promissory hote of P20,000, carrying an interest rate of P12%. The note is dated May 1, 2020 and the balance sheet date of the business is June 30, 2020. The accrued interest is how much? Is this an income or expense?
The business receives a promissory hote of P20,000, carrying an interest rate of P12%. The note is dated May 1, 2020 and the balance sheet date of the business is June 30, 2020. The accrued interest is how much? Is this an income or expense?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![The business receives a promissory
note of P20,000, carrying an interest
rate of P12%. The note is dated May 1,
2020 and the balance sheet date of the
business is June 30, 2020. The accrued
interest is how much? Is this an income
or expense?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb48b8caa-1fbc-4380-aad9-783719525f02%2Ffcf5ca96-1ae0-4122-ad0f-2f887b171018%2Fqeig9ie_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The business receives a promissory
note of P20,000, carrying an interest
rate of P12%. The note is dated May 1,
2020 and the balance sheet date of the
business is June 30, 2020. The accrued
interest is how much? Is this an income
or expense?
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