ASSIGNMENT

Date of PN May 31, 2019

Term 3 years
Face Amount P1,800,000
Interest 5%
Asset purchased Equipment

Required: Prepare journal entries from the date of the PN to maturity date under
the following:

a) Payment of the loan is upon maturity while interest is paid annually

b) Payment of both the loan and the interest is upon maturity

c) Payment of the loan and interest is annually

d) Compute for the current and non current liability for each year.