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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.

Required -

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: EM133021607

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