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SOLVED: On January 1, 20x1, Drive Co. paid cash of P200,000 and issued a non-interest-bearing note of P2,000,000 in exchange for a vehicle. The note is due in four equal annual installments. The first installment is due on January 1, 20x1, and the succeeding installments are due every 1st of January. The prevailing rate of interest for this type of note is 12%.Requirements:a. Prepare the journal entries.b. How much is the interest expense in 20x2?c. How much is the carrying amount of the note on
SOLVED: On January 1, 20x1, Drive Co. paid cash of P200,000 and iss…
Feb 24, 2023
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