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Problem 6-1 (ACP) Feasible Company sol P5,000,000 for P7,000, aid P1,000,00 er r the rem pounded annua promissory note fo. 12% interest com January 1, 2022. Required: Prepare journal entrie Required: d to anot 000 on January i; 0 dow ainder Prepare journal entries for 2020, 2021, and 2022 2020 her entity a tract of land costin, 020. n and signed a two-yea, of the purchase price pj, lly. The note matures o, s for 2020, 2021 and 2022. Feasible Company Journal Entries Jan. 1 Cash 1,000,000 Notes receivable 6,000,000 Land 5,000,000 Gain on sale of land 2,000,000 Dec. 31 Accrued interest receivable 720,000 Interest income (6,000,000 x 12%) 720,000 2021 Dec. 31 Accrued interest receivable 806,400 Interest income (6,720,000 x 12%) 806,400 2022 Jan. 1 Cash 7,526,400 Notes receivable 6,000,000 Accrued interest receivable 1,526,400 
