Red Company sold to another entity a tract of land costing P5,000,000 for P7,000,000 on January 1, 2021. The buyer paid P1,000,000 down and signed a two-year promissory note for the remainder of the purchase price plus 12% interest compounded annually. The note matures on January 1, 2023.
Red Company sold to another entity a tract of land costing P5,000,000 for P7,000,000 on January 1, 2021. The buyer paid P1,000,000 down and signed a two-year promissory note for the remainder of the purchase price plus 12% interest compounded annually. The note matures on January 1, 2023.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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Question
Red Company sold to another entity a tract of land costing
P5,000,000 for P7,000,000 on January 1, 2021.
The buyer paid P1,000,000 down and signed a two-year promissory
note for the remainder of the purchase price plus 12% interest compounded
annually. The note matures on January 1, 2023.
Requirement: Prepare
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