On january 1, 2014, ABC Co. sold a mining equipment to surigao mining for 1,500,000 which ABC...

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Accounting

Onjanuary 1, 2014, ABC Co. sold a mining equipment to surigao miningfor 1,500,000 which ABC accepted a 10% , 3-year noe payable inthree equal annual payments every December 31 starting in 2014.Theinterest is to be paid every end of the year. The cost of theequipment to ABC Co. was 500,000.

prepared journal entry for all the transactions affecting thesaid sales of equipment on january 1, 2014 up to the time the noteis fully paid on december 31, 2016

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All working forms part of the answer Notes Receivable for ABC is of 1500000 repayble in 3 installments We need to calculate the amount of principal amount to be repaid as follows A Amount of Note Payable 150000000 B No of Installments 3 C A B Annual amount of principal See Answer

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Onjanuary 1, 2014, ABC Co. sold a mining equipment to surigao miningfor 1,500,000 which ABC accepted a 10% , 3-year noe payable inthree equal annual payments every December 31 starting in 2014.Theinterest is to be paid every end of the year. The cost of theequipment to ABC Co. was 500,000.prepared journal entry for all the transactions affecting thesaid sales of equipment on january 1, 2014 up to the time the noteis fully paid on december 31, 2016