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FINANCIAL ACCOUNTING
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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13. The Santol company sold some machinery to the Malabon Company on January 1, 2005. The cash selling price would have been P3,791,000. Malabon entered into an installment sales contract which required annual payments of P1,000,000 including interest at 10% over five years. The first payment was due on December 31, 2005.. What amount of interest income should be included in Santol's 2007 income statement (the third year of the contract)? a. P241,800 b. P248,710 C. P379,100 d. P500,000
Transcribed Image Text:13. The Santol company sold some machinery to the Malabon Company on January 1, 2005. The cash selling price would have been P3,791,000. Malabon entered into an installment sales contract which required annual payments of P1,000,000 including interest at 10% over five years. The first payment was due on December 31, 2005.. What amount of interest income should be included in Santol's 2007 income statement (the third year of the contract)? a. P241,800 b. P248,710 C. P379,100 d. P500,000
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