*see attachedWhat is the interest income for the current year? a. 1,297,905b. 1,357,905c. 900,000d. 870,168 At the beginning of current year, Lessor Company leased a machine toLessee Company. The machine had an original cost of Php6,000,000. Thelease term was five years and the implicit rate on the lease was 15%.The lease is properly classified as a direct financing lease. The annuallease payments of Php1,730,541 are made each December 31.The machine reverts to Lessor at the end of the lease term, at whichtime the residual value of the machine will be Php400,000. Theresidual value is unguaranteed.The PV of 1 at 15% for 5 periods is .4972, and the PV of an ordinary annuityof 1 at 15% for 5 periods is 3.3522.

Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…

Answered: *see attached What is the interest…

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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interest uses 365 days as the time factor denominator in the simple interest formula. Effective Exact Compound Ordinary
A4
What is the situation that best describes the following amortization schedule? Payment # Amount Paid Interest Portion Principal Portion Principal Balance 12,000.00 1 3,132.39 210.00 2,922.39 9,077.61 2 3,132.39 158.86 2,973.53 6,104.08 3,132.39 106.82 3,025.57 3,078.51 4 3,132.38 53.87 3,078.51 0.00 Total 12,529.55 529.55 12,000.00 a. Reuben received a loan of $12,000 from a bank to purchase office supplies. He obtained the loan at an interest rate of 7% compounded quarterly for 1 year. Calculate the size of her end-of-quarter payments and construct an amortization schedule for his loan. b. Fabrizio received a loan of $12,000 from a bank to purchase office supplies. He obtained the loan at an interest rate of 70% compounded quarterly for 1 year. Calculate the size of her end-of-quarter payments and construct an amortization schedule for his loan. C. Reuben received a loan of $12,000 froma bank to purchase office supplies. He obtained the loan at an interest rate of 7% compounded every…
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A company borrows as follows: amortiza oustanding t interest instalment tion amount 0 0 301.386 0 3.000.000 1 90.000 301.386 211.386 2.788.614 2 83.658 301.386 217.728 2.570.886 3 77.127 301.386 224.260 2.346.626 4 70.399 301.386 230.987 2.115.639 5 63.469 301.386 237.917 1.877.722 6 56.332 301.386 245.055 1.632.667 7 48.980 301.386 252.406 1.380.261 8 41.408 301.386 259.978 1.120.282 9 33.608 301.386 267.778 852.505 10 25.575 301.386 275.811 576.693 11 17.301 301.386 284.085 292.608 12 8.778 301.386 292.608 Loan was requested on 31 October 2019 and instalments are monthly. It is requested: a. Make accounting entries for year finished 2019. b. If company were to make a full prepayment on 15 January 2020, how much would it have to pay? Make respective accounting entry(s). Note: Remember that, to transform monthly interest rate to fortnightly interest rate, following formula must be applied: (1 + i_monthly)^ = (1+i_fortnightly) c. If at the time of applying for credit, agreed term for…
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*see attached What is the interest income for the current year? a. 1,297,905 b. 1,357,905 c. 900,000 d. 870,168