How much was the accrued interest at December

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Q1. During the year ended December 31, 2019, Pine Company paid P46,000 for interest, but Pine's 2019 income statement properly reported interest expense of P50,000. There was no prepaid interest either at the beginning or at the end of 2019. Accrued interest at December 31, 2019 amounted to P5,000. How much was the accrued interest at December 31, 2018?

Q2. Clay Company borrows money under various loan agreements involving notes discounted and notes requiring interest payments at maturity. During the year ended December 31, 2020, Clay paid interest totaling P100,000. Clay's December 31 statement of financial position included the following information:

 

2019

2020

Prepaid interest

23,500

18,000

Interest payable

45,000

53,500

How much interest expense should Clay report for 2020 under accrual basis?

Reference no: EM133059478

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