On December 1, 2020, A Co. signed a 15-month, P69,325 mortgage note payable to X...
60.1K
Verified Solution
Link Copied!
Question
Accounting
On December 1, 2020, A Co. signed a 15-month, P69,325 mortgage note payable to X Bank in conjunction with the purchase of Equipment. The mortgage calls for a 1.0 % interest per month. The note is fully amortized over 15 months. The monthly payments amount to P5,000.
What is the Journal entry on the date of issuance:
Use the following accounts:
Notes Payable
Discount on Notes Payable
Cash
Premium on Notes Payable
Equipment
Interest Payable
Interest Expense
1.December 1, 2020, Journal Entry
2. What is the Journal entry on December 31: 3. Compute for the Current portion of the Notes Payable as of December 31, 2020. 4. Compute for the Current portion of the Notes Payable as of December 31, 2020. 5. Compute for the Total Cost of Borrowing: please answer in 30 mins
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
