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On December 1, 20x5, Money Co. gave Home Co. a P200,000, 11% loan. Money paid proceeds of P194,000 after the deduction of a P6,000 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of 12.4% at a present value of P194,000. What amount of expense a deduction of a P6,000 nonrefundable loan origination Principal and interest are due in 60 monthly installments P4,310 beginning January 1, 20x6. The repayments yield effective interest rate of 11% at a present value of P200,000 an an from this loan should Home report in its 20x5 profit or loss? b. 1,833 с. 2,005 d. 7,833 а. 0

On December 1, 20x5, Money Co. gave Home Co. a P200,000, 11% loan. Money paid proceeds of P194,000 after the deduction of a P6,000 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of 12.4% at a present value of P194,000. What amount of expense a deduction of a P6,000 nonrefundable loan origination Principal and interest are due in 60 monthly installments P4,310 beginning January 1, 20x6. The repayments yield effective interest rate of 11% at a present value of P200,000 an an from this loan should Home report in its 20x5 profit or loss? b. 1,833 с. 2,005 d. 7,833 а. 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Although it is possible to solve the problem manually (using only pen, paper type <Payments>; in D3 <Interest>, in E3 <Amortization> and in F3 <Present Let's place the headings on the amortization table that we are preparing. In interest rate is not readily available; you will need to determine this. cell B3 (i.e., column B, row 3), type <Month>. In cell C3 (i.e., column C, row 3), in the illustrations in this book. Moreover, information on the effective transactions are made on a monthly basis rather than on an annual basis like technology. In practice, it is more common that payments on financing deduction of a P6,000 nonrefundable loan origination fee. 11% loan. Money paid proceeds of P194,000 after the origination fee. The effective interest rate on the loan is 92 Chapter2 Notes Payable 93 approximately equal to с. 16%. d. 17.37%. a. 11.19%. b. 12%. O.K, get an access to a computer and open the Microsoft Excel ® 10. On December 1, 20x5, Money Co. gave Home Co. a P200,000, app. Principal and interest are due in 60 monthly installments Step 1: Headings of P4,310 beginning January 1, 20x6. The repayments yield effective interest rate of 11% at a present value of P200,000 an 12.4% at a present value of P194,000. What amount of expen from this loan should Home report in its 20x5 profit or loss? d. 7,833 edal an value>. Formulas Data Review View c. 2,005 Page Layout Acrobat b. 1,833 Insert Home а. 0 -11 X Cut Calibri Wrap Tet (AICPA) a Copy - BIU. 3 Merge & Cent Faste Format Painter Font Alignment Clipboard F6 A PROBLEM 5: CLASSROOM ACTIVITY 2. Interest Amortization Present value NOTE: This activity is OPTIONAL as the learner will need to have access to a COMPUTER with a Microsoft Excel ® application installed in it. Month Payments 3 Step 2: Month column In B5, type <1>. This indicates the initial recognition (payment of down payment). World Corporation acquired a vehicle in exchange for a note payable. Details are as follows: Car model: 3.5L Expedition Platinum 4x4 AT (Year: 2017) Down payment: P318,000 Monthly amortization (5 yrs.): P72,703 In B6, type <1> or select B6 then press CTRL+D (press the "Ctrl" key and without releasing it press the "D" key; this is the shortcut for fill down). B6 indicates the first monthly installment payment. ale Move the cursor to the bottom right of cell B6 until the cursor turns into a small black cross. The vehicle has a cash price equivalent of P3,580,000 D. 1 Requirements: Determine the following by preparing an amortization table using Microsoft Excel ®: 3 Month Payments Interest Amortization Present value 4 a. Effective interest rate b. Total cash outflow on the acquisition of the vehicle Total interest expense over the term of the note d. Prepare the journal entry on initial recognition The cursor tims into a small black cros С. Double click then drag down until cell B65, Left click the "Auto Fill Options" then select "Fill Series." Solution Guide: and calculator), that would be very cumbersome. We will need to
Transcribed Image Text:Although it is possible to solve the problem manually (using only pen, paper type <Payments>; in D3 <Interest>, in E3 <Amortization> and in F3 <Present Let's place the headings on the amortization table that we are preparing. In interest rate is not readily available; you will need to determine this. cell B3 (i.e., column B, row 3), type <Month>. In cell C3 (i.e., column C, row 3), in the illustrations in this book. Moreover, information on the effective transactions are made on a monthly basis rather than on an annual basis like technology. In practice, it is more common that payments on financing deduction of a P6,000 nonrefundable loan origination fee. 11% loan. Money paid proceeds of P194,000 after the origination fee. The effective interest rate on the loan is 92 Chapter2 Notes Payable 93 approximately equal to с. 16%. d. 17.37%. a. 11.19%. b. 12%. O.K, get an access to a computer and open the Microsoft Excel ® 10. On December 1, 20x5, Money Co. gave Home Co. a P200,000, app. Principal and interest are due in 60 monthly installments Step 1: Headings of P4,310 beginning January 1, 20x6. The repayments yield effective interest rate of 11% at a present value of P200,000 an 12.4% at a present value of P194,000. What amount of expen from this loan should Home report in its 20x5 profit or loss? d. 7,833 edal an value>. Formulas Data Review View c. 2,005 Page Layout Acrobat b. 1,833 Insert Home а. 0 -11 X Cut Calibri Wrap Tet (AICPA) a Copy - BIU. 3 Merge & Cent Faste Format Painter Font Alignment Clipboard F6 A PROBLEM 5: CLASSROOM ACTIVITY 2. Interest Amortization Present value NOTE: This activity is OPTIONAL as the learner will need to have access to a COMPUTER with a Microsoft Excel ® application installed in it. Month Payments 3 Step 2: Month column In B5, type <1>. This indicates the initial recognition (payment of down payment). World Corporation acquired a vehicle in exchange for a note payable. Details are as follows: Car model: 3.5L Expedition Platinum 4x4 AT (Year: 2017) Down payment: P318,000 Monthly amortization (5 yrs.): P72,703 In B6, type <1> or select B6 then press CTRL+D (press the "Ctrl" key and without releasing it press the "D" key; this is the shortcut for fill down). B6 indicates the first monthly installment payment. ale Move the cursor to the bottom right of cell B6 until the cursor turns into a small black cross. The vehicle has a cash price equivalent of P3,580,000 D. 1 Requirements: Determine the following by preparing an amortization table using Microsoft Excel ®: 3 Month Payments Interest Amortization Present value 4 a. Effective interest rate b. Total cash outflow on the acquisition of the vehicle Total interest expense over the term of the note d. Prepare the journal entry on initial recognition The cursor tims into a small black cros С. Double click then drag down until cell B65, Left click the "Auto Fill Options" then select "Fill Series." Solution Guide: and calculator), that would be very cumbersome. We will need to
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