Laguna Company purchased a machine with a cash price of P350,000. Laguna gave the following as payment: · Cash- P100,000 · Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000 · Laguna 1,000 ordinary shares, P100 par (fair value P130)- P100,000 How much is the discount on notes payable to be recorded on the date of purchase?

Laguna Company purchased a machine with a cash price of P350,000. Laguna gave the following as payment: · Cash- P100,000 · Notes payable, non-interest bearing (payable in three equal annual payments, beginning 1/1/23)- P150,000 · Laguna 1,000 ordinary shares, P100 par (fair value P130)- P100,000 How much is the discount on notes payable to be recorded on the date of purchase?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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