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3. What is the initial carrying amount of the loan receivable on the part of National Bank?
4. Based on preceding data, what is the initial carrying amount of the loan payable on the part of BBB Company?
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- National Bank granted a 10-year loan to Abbo Company in the amount of P1,500,000 with a stated interest rate of 6%. Payments are due monthly and are computed to be P16,650. National Bank incurred a P40,000 of direct loan origination cost and P20,000 of indirect loan origination cost. In addition, National Bank charged Abbo Company a 4-point nonrefundable loan origination fee. What is the initial carrying amount of the loan receivable on the part of National Bank? a. 1,440,000 O b. 1,480,000 O c. 1,500,000 d. 1,520,000National Bank granted a 10-year loan to Abbo Company in the amount of P1,500,000 with a stated interest rate of 6%. Payments are due monthly and are computed to be P16,650. National Bank incurred a P40,000 of direct loan origination cost and P20,000 of indirect loan origination cost. In addition, National Bank charged Abbo Company a 4-point nonrefundable loan origination fee. What is the initial carrying amount of the loan payable on the part of Abbo Company? a. 1,440,000 O b. 1,480,000 O c. 1,500,000 d. 1,520,000BPI granted a 10-year loan to a borrower in the amount of ₱1,500,000 with stated interest rate of 6%. Payments are due monthly and are computed to be ₱16,650. The bank incurred ₱40,000 of direct loan origination cost and ₱20,000 of indirect loan origination cost. In addition, the bank charged the borrower a 4-point nonrefundable loan origination fee. What is the carrying amount of the loan receivable to be reported initially by the bank?
- FIVESIX Company, a lending institution lent P2,000,000 at 8.0000% perannum, to LAMANEH, Inc. The loan is payable after 5 years. Thecompany incurred direct origination costs of P200,000 and indirectorigination costs of P50,000. The company also charged origination feesto the borrower amounting to P295,000.The implicit interest rate on this loan is 9.2284%How much is the initial carrying value of the loan receivable?Bulldogs Inc. loaned a certain amount from a reputable bank for a term of one year at 8% quoted rate for a principal of P415,000. Out of the face value of the loan, only P375,000 can be used due to the provision of a compensating balance. What is the effective rate of interest and the compensating balance? A. 8%; 33,200 B. 8%; 40,000 C. 8.55%; 33,200 D. 8.85%; 40,000Vaughn Manufacturing assigns $7300000 of its accounts receivables as collateral for a $2.64 million 9% loan with a bank. Vaughn Manufacturing also pays a finance fee of 2% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables?
- On Jan. 1, 2021, XYZ Bank extended a 3-year 5,000,000 loan to ABC Corporation. The interest rate agreed upon is 7%. The bank incurred direct and indirect origination costs of 75,100 and 50,000 respectively, but collected origination fees of 328,230 from ABC. The effective interest rate is 9%. What is the total receivable related to the loan to ABC on Dec. 31, 2021?$120,000 of its accounts receivable to 2nd National Bank as collateral for a $70,000 loan due August 1 of the same year. The assignment agreement calls for Bay Co. to continue to collect the receivables. The bank assesses a finance charge of 3% of the accounts receivable. The interest rate on the loan is 8% which is a realistic interest rate for this type of loan. Prepare the journal entry that Bay Co. would make on February 1 Prepare the journal entry for Bay's collection of $50,000 of the receivables between February 1 and July 31. Prepare the journal entry to record Bay Co.'s payment to the bank.Megabank granted an 8% 3-year loan to Global Company on January 1, 2018. The interest on the loan is payable every December 31. Megabank incurred P148,122 of direct origination cost but an origination fee of P300,000 was charged against Global Company. The effective rate on the loan as a result of the origination fee and cost is now 9%. What is the amortized cost of the loan on December 31, 2019 in Megabank's accounting book ?
- Jackson Industries has borrowed $125,000 under a line-of-credit agreement. While the company normally maintains a checking account balance of $15,000 in the lending bank, this credit line requires a 20% compensating balance. The stated interest rate on the borrowed funds is 10%. 1.What is the effective annual rate of interest on the line of credit? Format: 11.11%The Premiere Company obtained a short-term bank loan for P1,000,000 at an annual interest rate 12%. As a condition of the loan, Premiere is required to maintain a compensating balance of P300,000 in its checking account. The checking account earns interest at an annual rate of 3%. Premiere would otherwise maintain only P100,000 in its checking account for transactional purposes. Required: Compute for the effective interest rate assuming: a. Loan is not discounted. Loan is without compensating balance. b. Loan is discounted. Loan is without compensating balance. c. Loan is not discounted. Loan is with compensating balance. d. Loan is discounted. Loan is with compensating balance. e. Which of the loan arrangements above is most beneficial to the firm? Justify.Sanchez corporation borrowed a working capital from Barroga Corporation for two consecutiveyears – Php 101250 and Php 105621, on January 1, 1996 and January 1, 1997, respectively. Sanchezcorporation made a partial payment of Php 79200 on January 1, 2000 and agreed with the lender thatthe balance of the loan would be amortized by 9 equal payments. The interest rate of the loan is12.5% compounded semiannually. Find the amount of each payment.