On October 1, 2020, the Burgee's Food Corporation purchased three units of baking by issuing a...

 

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On October 1, 2020, the Burgee's Food Corporation purchased three units of baking by issuing a four-year, 9% promissory note with face value of P2,591,760. The note and accrued interest payable in equal amounts of P800,000 every September 30, starting September 30, 2021. The periodic payment of P800,000 is to be applied first to interest, and the remainder to the principal. REQUIRED: a Prepare an amortization table over the term of the note. b What amount relating to the note shall be presented as part of current liabilities and as part of non-current liabilities at December 31, 2021 statement of financial position? On October 1, 2020, the Burgee's Food Corporation purchased three units of baking by issuing a four-year, 9% promissory note with face value of P2,591,760. The note and accrued interest payable in equal amounts of P800,000 every September 30, starting September 30, 2021. The periodic payment of P800,000 is to be applied first to interest, and the remainder to the principal. REQUIRED: a Prepare an amortization table over the term of the note. b What amount relating to the note shall be presented as part of current liabilities and as part of non-current liabilities at December 31, 2021 statement of financial position?

Answer rating: 100% (QA)

a Amortization Table Date Payment Interest Expense Principal Repayme... View the full answer