Determine the total interest expense for the year ended

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Question - Guava Corporation purchases an equipment on July 1, 2020. The equipment cash price is P79,000. Guava signs a deferred payment contract that provides for a down payment of P10,000 and an 8-year note for P103,472. The note is to be paid in 8 equal annual installments for P12,934. The payments include 10% interest and are made on June 30 of each year, beginning June 30, 2021.

Determine the carrying amount of the note payable on December 31, 2021?

Determine the total interest expense for the year ended December 31, 2021?

Reference no: EM132984082

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