On January 1, 2022, an entity showed the following: Note payable - due January 1, 2022...
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On January 1, 2022, an entity showed the following: Note payable - due January 1, 2022 - 14% Accrued interest payable 5,000,000 1,000,000 The entity is granted by the creditor the following concessions on January 1, 2022: a. The accrued interest of P1,000,000 is forgiven. b. The principal obligation is reduced to P4,000,000. c. The new interest rate is 10% payable every December 31. d. The new date of maturity is December 31, 2022. How much is gain on extinguishment of debt? On January 1, 2022, an entity showed the following: Note payable - due January 1, 2022 - 14% Accrued interest payable 5,000,000 1,000,000 The entity is granted by the creditor the following concessions on January 1, 2022: a. The accrued interest of P1,000,000 is forgiven. b. The principal obligation is reduced to P4,000,000. c. The new interest rate is 10% payable every December 31. d. The new date of maturity is December 31, 2022. How much is gain on extinguishment of debt?
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Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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