The business receives a promissory note of P50,000, carrying an interestrate of P10%. The note is dated April 1, 2020 and the balance sheet dateof the business is December 31, 2020. The accrued interest income is

Accrued income is that income which are earned by the business but the amount is yet to be received…

Answered: The business receives a promissory 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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Greener Pastures Corporation borrowed $1,950,000 on November 1, 2021. The note carried a 9 percent interest rate with the principal and interest payable on June 1, 2022. (a) The note issued on November 1. (b) The interest accrual on December 31. Indicate the effects of the amounts for the above transactions.
On December 31, 2021, Roth Company issued a P1,000,000 face value note payable to Wake Company in exchange for services rendered to Roth. The note, made at usual trade terms, is due in nine months and bears interest, payable at maturity, at the annual rate of 3%. The market interest rate is 8%. At what amount should the note payable be reported in Roth’s December 31, 2021 balance sheet?
Greener Pastures Corporation borrowed $1,750,000 on November 1, 2018. The note carried a 12 percent interest rate with the principal and interest payable on June 1, 2019. (a) The note issued on November 1. (b) The interest accrual on December 31.
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The business receives a promissory note of P50,000, carrying an interest rate of P10%. The note is dated April 1, 2020 and the balance sheet date of the business is December 31, 2020. The accrued interest income is