On January 1, 2021, Mickey Mouse Corporation borrowed P1,500,000 from Minnie Mouse Bank and issued a one-year note, which the bank discounted at 10%. Mickey Mouse Company hypothecated its accounts Receivable amounting to P2,200,000 as a collateral to the loan borrowed from Minnie Mouse Bank. It is also a policy of Minnie Mouse Bank to deduct in advance the one-year interest for the loan. How much is the amount of cash received from the bank on January 1, 2021?

On January 1, 2021, Mickey Mouse Corporation borrowed P1,500,000 from Minnie Mouse Bank and issued a one-year note, which the bank discounted at 10%. Mickey Mouse Company hypothecated its accounts Receivable amounting to P2,200,000 as a collateral to the loan borrowed from Minnie Mouse Bank. It is also a policy of Minnie Mouse Bank to deduct in advance the one-year interest for the loan. How much is the amount of cash received from the bank on January 1, 2021?

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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