The next two items are based on the following information: House Publishers offered a contest in which the winner would receive P1,000,000, payable over 20 years. On December 31, 2000, House announced the winner of the contest and signed a note payable to the winner for P1,000,000, payable in P50,000 installments every January 2. Also on December 31, 2000, House purchased an annuity for P418,250 to provide the P950,000 prize monies remaining after the first P50,000 installment, which was paid on January 2, 2001. In its December 31, 2000, balance sheet, what amount should House report as note payable-contest winner, net of current portion a.368,250 b. 418,250 c. 900,000 d. 950,000 In its 2000 income statement, what should House report as contest prize expense? a.0 b. 418,250 c. 468,250 d. 1,000,000

The next two items are based on the following information: House Publishers offered a contest in which the winner would receive P1,000,000, payable over 20 years. On December 31, 2000, House announced the winner of the contest and signed a note payable to the winner for P1,000,000, payable in P50,000 installments every January 2. Also on December 31, 2000, House purchased an annuity for P418,250 to provide the P950,000 prize monies remaining after the first P50,000 installment, which was paid on January 2, 2001. In its December 31, 2000, balance sheet, what amount should House report as note payable-contest winner, net of current portion a.368,250 b. 418,250 c. 900,000 d. 950,000 In its 2000 income statement, what should House report as contest prize expense? a.0 b. 418,250 c. 468,250 d. 1,000,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 7MC: Using the information provided, what transaction represents the best application of the present...

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