On January 1, 2022, AA Company received cash of P1,000,000 and a 4-year,noninterest bearing note to be collected in equal amounts of P600,000 everyDecember 31 of each year. AA company sold an old furniture costingP3,000,000 and carrying amount of P2,200,000 on date of sale. Interesteffective on January 1, 2022 is 5%.How much is the interest income in AA's statement of comprehensive income forthe period ending December 31, 2022?

Solution Given Life of note 4 years Amount to be collected every year 600000…

On January 1, 2022, AA Company received cash of P1,000,000 and a 4-year, oninterest bearing note to be collected in equal amounts of P600,000 every December 31 of each year. AA company sold an old furniture costing 3,000,000 and carrying amount of P2,200,000 on date of sale. Interest ffective on January 1, 2022 is 5%. How much is the interest income in AA's statement of comprehensive income for

On January 1, 2022, AA Company received cash of P1,000,000 and a 4-year, oninterest bearing note to be collected in equal amounts of P600,000 every December 31 of each year. AA company sold an old furniture costing 3,000,000 and carrying amount of P2,200,000 on date of sale. Interest ffective on January 1, 2022 is 5%. How much is the interest income in AA's statement of comprehensive income for

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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