On January 1, 20x1, SUBDUE Co. borrowed 10%, P4,000,000 loan from CONQUER Ban Principal is due on January 1, 20x4 but interests are due annually starting January 1, 20x2 SUBDUE was charged by the bank a 3% nonrefundable loan origination fee representing service fee. How much is the carrying amount of the note on initial recognition?

On January 1, 20x1, SUBDUE Co. borrowed 10%, P4,000,000 loan from CONQUER Ban Principal is due on January 1, 20x4 but interests are due annually starting January 1, 20x2 SUBDUE was charged by the bank a 3% nonrefundable loan origination fee representing service fee. How much is the carrying amount of the note on initial recognition?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1EB: Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan...

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