FERB Company obtained a loan on June 26, 2020 and will pay a total amount of P2,473,515 (i.e. maturity value) on December 23, 2020. The interest is 9% per year. How much is the loan principal
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#25
FERB Company obtained a loan on June 26, 2020 and will pay a total amount of P2,473,515 (i.e. maturity value) on December 23, 2020. The interest is 9% per year. How much is the loan principal
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- Suicune Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on the loan is 8% payable semi-annually. The loan matures in three years on December 31, 2022. The effective interest rate on the loan is 6%. How much is the carrying amount of the loan as of December 31, 2020?Entei Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on the loan is 8% payable semi-annually. The loan matures in three years on December 31, 2022. The effective interest rate on the loan is 10%. How much is the total interest income to be presented on the statement of comprehensive income for 2020?#24 On August 1, 2020, PHINEAS Company borrowed P9,000,000 from a lender, which is to be paid on January 28, 2021. The interest is 8% per annum. How much is the interest expense for 2020?
- 19. Rublin Company applies for a one-year, P1 million loan from RY Bank. The term of the loan requires 12% per annum interest, compounded semi-monthly and will be paid together with the principal at the end of the year. How much total interest will be paid at the end of the year?Awesome Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10% payable annually starting December 31, 2020. The loan matures in five years on December 31, 2024. Principal amount 4,000,000 Direct origination cost 61,500 Origination fee received from the borrower 350,000 The effective rate on the loan after considering the direct origination cost and origination fee received is 12%. Required: 1. Compute the carrying amount of the loan receivable on January 1, 2020. 2. Prepare a table of amortization for the loan receivable. 3. Prepare the journal entries for 2020 and 2021.What is the interest income for 2021? Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payable annually starting December 31, 2023. Principal amount Origination fee charged against the borrower Direct origination cost incurred 3,000,000 100,000 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. a. 240,000 O b. 189,618 c. 252,824 O d. 180,000
- Magic Finance Company reports a loan receivable from Blue Company in the amount of P5,000,000. The initial loan’s repayments include a 10% interest rate plus annual principal payment of P1,000,000 on January 1 of each year. The loan was made on January 1, 2020. Blue made the P500,000 interest payments for 2020 but did not make the P1,000,000 principal payment nor the P500,000 interest payment in 2021. Blue is having financial difficulty because of restrictions brought about by the pandemic; thus, Magic has concluded that the loan is impaired. Analysis of Blue’s financial condition on December 31, 2021 indicates that the principal and interest currently due can be collected but it is probable tat no further interest can be collected. The probable amounts and timing of collection are determined as follows: December 31, 2022 – P1,750,000; December 31, 2023 – P2,000,000; December 31, 2024 – P1,750,000. The present value factors at 10% are as follows: One period – 0.909; Two periods –…Lugia Bank granted a P4,000,000 loan to Ho-oh Company on January 1, 2020. The annual interest of the loan is 12% payable semi-annually. The loan matures in two years. The effective interest rate on the loan is 16%. (Round off present value factors up to four decimal point; only round off up to two decimals the final value) Questions: 1. What is the initial carrying amount of the loan? 2. How much is the interest income for the year 2020? 3, What is the balance of the discount on the loan as of December 31, 2020?A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018 at 14% converted semi-annually? P15,257.90 P33,500.39 P 28, 600.21 P36,548,19 Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12% compounded semi-annually. P15,257.90 P33,567.21 P 38, 678.15 P36,785.59
- MNO Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 10% payable annually starting December 31, 2020. The loan matures in three years on December 31, 2022. Additional information is as follows: Principal amount of P5,000,000; Direct origination cost incurred for P100,000; Indirect origination cost incurred for P50,000 and Origination fee received from the borrower was P340,000. After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. Compute for the carrying amount of the loan receivable on December 31, 2020MNO Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 10% payable annually starting December 31, 2020. The loan matures in three years on December 31, 2022. Additional information is as follows: Principal amount of P5,000,000; Direct origination cost incurred for P100,000; Indirect origination cost incurred for P50,000 and Origination fee received from the borrower was P340,000. After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. Compute for the interest income for 2020.2. A loan amounting to P1.5 million was secured dated, June 1, 2010. The loan should be paid by means of 60 equal payments to be made at the end of each month, with the first payment due on June 30, 2010. The interest rate is 15% compounded monthly. a. Determine the required monthly payments to retire the debt. b. Show the first five rows of the amortization table corresponding to this loan.