Dilraba Co. sold equipment in exchange for a P750,000, non-interest bearing note receivable in 5 equal annual installments starting December 31, 2021. The cash selling price for this equipment is P675,000. (usefraction method)How much in the unearned income on December 31, 2023?What is the denominator of the fraction used to distribute the unearned interest?( PreviousContinue >

Unearned revenue is the revenue that has not been earned by the company but the payment for the same…

Dilraba Co. sold equipment in exchange for a P750,000, non-interest bearing note receivable in 5 equal annual installments starting December 31, 2021. The cash selling price for this equipment is P675,000.( fraction method) How much in the unearned income on December 31, 2023?

Dilraba Co. sold equipment in exchange for a P750,000, non-interest bearing note receivable in 5 equal annual installments starting December 31, 2021. The cash selling price for this equipment is P675,000.( fraction method) How much in the unearned income on December 31, 2023?

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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Question

Dilraba Co. sold equipment in exchange for a P750,000, non-interest bearing note receivable in 5 equal annual installments starting December 31, 2021. The cash selling price for this equipment is P675,000. (use
fraction method)
How much in the unearned income on December 31, 2023?
What is the denominator of the fraction used to distribute the unearned interest?
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