On January 1, 2021, Chua Company purchased a piece of equipment with a list price of P6.000.000. The contract stipulates that Chua pays a down payment of P2,000,000 with the balance due in ten equal semi-annual installments of P518,018 on June 30 and December 31. At the time of purchase, the prevailing interest rate on such contracts was 10%. How much would be debited as equipment? a. P4,000,000 b. P5.180.000 c. P6,000,000 d. P6,180,183

On January 1, 2021, Chua Company purchased a piece of equipment with a list price of P6.000.000. The contract stipulates that Chua pays a down payment of P2,000,000 with the balance due in ten equal semi-annual installments of P518,018 on June 30 and December 31. At the time of purchase, the prevailing interest rate on such contracts was 10%. How much would be debited as equipment? a. P4,000,000 b. P5.180.000 c. P6,000,000 d. P6,180,183

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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