Reference no: EM132926223
Question - On January 1, 2019, the Dolce Corporation issued a three-year, non-interest bearing note with face value of P 3,000,000 for a piece of land purchased from Jardine Corporation. The note is payable in annual installments of P 1,000,000 every December 31, starting on December 31, 2019. The land has an equivalent cash price of P 2,400,000, a price that provides the note an effective interest rate of 12%.
How much is the interest expense for the year ending December 31, 2019?
-P 360,000
-P 288,000
-P 240,000
-P 168,000
Use the same information given in number 12. How much of the notes payable, net of discount, should be reported as part of current liabilities on December 31, 2019 balance sheet?
-P 1,000,000
-P 890,560
-P 805,120
-P 797,440
Use the same information given. What is the balance of the discount on notes payable at December 31, 2019?
-P 240,000
-P 312,000
-P 360,000
-P 432,000