I don't understand how my text book came up with these numbers.
They were teaching my how to measure Interest Payable and Interest Expense on year end for example one.
They didn't tell me what "P/A" and "P/F" is.
Things to know on the attached file:
Example one entailed that Lionel sold Baylor inventory payable every march 31st. Baylor received a 2 year note with 4% interest. Both market and stated interest were equal in this example.
Example two, is written very differently and is very confusing to me.
Any help is appreciated. Thank you!
They were teaching my how to measure Interest Payable and Interest Expense on year end for example one.
They didn't tell me what "P/A" and "P/F" is.
Things to know on the attached file:
Example one entailed that Lionel sold Baylor inventory payable every march 31st. Baylor received a 2 year note with 4% interest. Both market and stated interest were equal in this example.
Example two, is written very differently and is very confusing to me.
Any help is appreciated. Thank you!
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