Mia Calipa Forwarders borrowed Php600,000 from the bank on September 1, 2015. The note carried an 8% annual rate of interest and was set to mature on February 28, 2016. Interest and principal were paid in cash on the maturity date.
1) What was the amount of interest expense recognized on the 2015 income statement? Solution please.
2) What was the amount of total liabilities shown on the 2015 balance sheet? Solution please.
3) What was the total amount of cash that was paid to the bank on February 28, 2016 for the principal and interest? Solution please.
4) What was the amount of interest expense shown on the 2016 income statement? Solution please.

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