Question: Philip's Company has an 8% note receivable dated June 30, 2021, in the original amount of P1,500,000. Payments of P500,000 in principal plus accrued interest

Philip's Company has an 8% note receivable dated June 30, 2021, in the original amount of P1,500,000. Payments of P500,000 in principal plus accrued interest are due annually on July 1, 2022 and 2024.

1. What is the balance of note receivable on July 1, 2022? Show solution.

2. On June 30, 2023, what amount should be reported as accrued interest on the note receivable? Show solution.

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