Prepare the amortization table

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Question - Prepare the amortization table.-Provide all the necessary journal entries.

a) On January 1, 20x1, Lala Bus Co. received a 4-year, non-interest bearing note of P1,000,000 in exchange for land with carrying amount of P500,000. The note is due on Dec. 31, 20x4. The effective interest rate is 14%.

b) On January 1, 20x1, Ning Co. received a 3-year, non-interest bearing note of P900,000 in exchange for machinery with historical cost of P1,200,000 and accumulated depreciation of P400,000. The note is due on Dec. 31, 20x3. The effective interest rate is 12%.

Reference no: EM132898388

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