On January 1, 20x1, Lala Bus Co. received a 4-year, noninterest bearing note of P1,000,000 in...
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On January 1, 20x1, Lala Bus Co. received a 4-year, noninterest bearing note of P1,000,000 in exchange for land with carrying amount of P500,000. The note is due on December 31, 20x4. The effective interest rate is 14%. Requirements: a. Prepare the amortization table. b. Provide all the necessary journal entries. 2. On January 1, 20x1, Meow Co. received a 3-year, noninterest bearing note of P900,000 in exchange for machinery with historical cost of P1,200,000 and accumulated depreciation of P400,000. The note is due on December 31, 20x3. The effective interest rate is 12%. Requirements: a. Prepare the amortization table. b. Provide all the necessary journal entries. 3. On Jan. 1, 20x1, Spidah Co. received a P1,000,000, noninterest bearing note in exchange for land with carrying amount of On January 1, 20x1, Lala Bus Co. received a 4-year, noninterest bearing note of P1,000,000 in exchange for land with carrying amount of P500,000. The note is due on December 31, 20x4. The effective interest rate is 14%. Requirements: a. Prepare the amortization table. b. Provide all the necessary journal entries. 2. On January 1, 20x1, Meow Co. received a 3-year, noninterest bearing note of P900,000 in exchange for machinery with historical cost of P1,200,000 and accumulated depreciation of P400,000. The note is due on December 31, 20x3. The effective interest rate is 12%. Requirements: a. Prepare the amortization table. b. Provide all the necessary journal entries. 3. On Jan. 1, 20x1, Spidah Co. received a P1,000,000, noninterest bearing note in exchange for land with carrying amount of
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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