On January 1, 20x1, SUBDUE Co. borrowed 10%, P4,000,000 loan from CONQUER Ban Principal is due on January 1, 20x4 but interests are due annually starting January 1, 20x2 SUBDUE was charged by the bank a 3% nonrefundable loan origination fee representing service fee. How much is the carrying amount of the note on initial recognition?

On January 1, 20x1, SUBDUE Co. borrowed 10%, P4,000,000 loan from CONQUER Ban Principal is due on January 1, 20x4 but interests are due annually starting January 1, 20x2 SUBDUE was charged by the bank a 3% nonrefundable loan origination fee representing service fee. How much is the carrying amount of the note on initial recognition?

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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