On July 1, 2021, ABC Co. borrowed P1,000,000 and issued a one-year note payable. The lender discounted the note at 12%. Prepare all the necessary journal entries under the following scenarios: a. The note is due on lump sum on June 30, 2022. The effect of discounting is immaterial. b. The note is due in equal quarterly installments starting September 20, 2021
On July 1, 2021, ABC Co. borrowed P1,000,000 and issued a one-year note payable. The lender discounted the note at 12%. Prepare all the necessary journal entries under the following scenarios: a. The note is due on lump sum on June 30, 2022. The effect of discounting is immaterial. b. The note is due in equal quarterly installments starting September 20, 2021
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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On July 1, 2021, ABC Co. borrowed P1,000,000 and issued a one-year note payable. The lender
discounted the note at 12%.
Prepare all the necessary
a. The note is due on lump sum on June 30, 2022. The effect of discounting is immaterial.
b. The note is due in equal quarterly installments starting September 20, 2021
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