question archive On April 1, 2020, the KFC Delivery Service issued a P9,000,000 non-interest bearing note due March 31, 2023 for a piece of land with a cash price of P6,949,800
Subject:AccountingPrice:9.82 Bought3
On April 1, 2020, the KFC Delivery Service issued a P9,000,000 non-interest bearing note due March 31, 2023 for a piece of land with a cash price of P6,949,800. REQUIRED: (a) Determine the effective interest rate of this note. (b) Prepare a table of discount amortization over the term of the note. (c) Determine the interest expense for the year ended December 31, 2020 and the carrying amount of the note at December 31, 2020. (d) Prepare the necessary entries for years 2020 through 2023 relative to the foregoing, including any adjustments at year- end, December 31,
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