On September 1,2019, Pine Company issued a note payable in the amount of P1,800,000, bearing interest at 12%, and payable in three equal annual principal payments of P600,000. On this date, the prime rate was 11%. The first interest and principal payment was made on September 1,2020. 1. On December 31,2020, what amount should be reported as accrued interest payable? A. 44,000 B. 48,000 C. 66,000 D. 72,000
On September 1,2019, Pine Company issued a note payable in the amount of P1,800,000, bearing interest at 12%, and payable in three equal annual principal payments of P600,000. On this date, the prime rate was 11%. The first interest and principal payment was made on September 1,2020. 1. On December 31,2020, what amount should be reported as accrued interest payable? A. 44,000 B. 48,000 C. 66,000 D. 72,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 8-15
On September 1,2019, Pine Company issued a note payable in the amount of P1,800,000, bearing interest at 12%, and payable in three equal annual principal payments of P600,000. On this date, the prime rate was 11%.
The first interest and principal payment was made on September 1,2020.
1. On December 31,2020, what amount should be reported as accrued interest payable?
A. 44,000
B. 48,000
C. 66,000
D. 72,000
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