How much interest expense is incurred

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XYZ Company borrowed P2,000,000 from a bank on June 30, 2019. The loan has an annual interest of 10% and the principal is payable at the end of every quarter amounting to P250,000. The first quarterly payment will be on September 30, 2019.

Problem 1: An amortization schedule for 2019 until the loan is fully paid on June 30, 2021. How much interest expense is incurred in 2019 and 2020 with respect to the loan?

Reference no: EM132813787

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