Florenda Quino Forwarders borrowed P 600,000 from the bank on Sept 1, 2020. The note carried an
8% annual rate and was set to mature on Feb 28, 2021. Interest and principal were paid in cash on the
maturity date.
Required:
1. What was the amount of interest expense paid in cash in 2020?
2. What was the amount of interest expense recognized on the 2020 income statement?
3. What was the amount of total liabilities shown on the 2020 balance sheet?
4. What was the total amount of cash that was paid to the bank on Feb 28, 2021 for principal amd
interest?
5. What was the amount of interest expense shown on the 2021 income statement?