DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray 1,2020. The loan has a term of 5 years with interest collectible annualy at 10%. Payment of principal will be equal installments at end of the year Direct origination cost 20,445 Origination fee 80,309 Effective interest rate 10.50% Requirement: - Prepare the journal entry

Q: On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be…

A: Carrying amount is also known as carrying value or book value. The carrying amount of a note issued…

Q: Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

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A: CARRYING VALUE It refers to the worth of an asset or a debt at the time it was purchased. Carrying…

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A:

Q: ABC Bank granted a loan to a borrower on Jan. 1, 2019. The interest on the loan is 10% payable…

A: Interest income is the sum of money given by an organization which has raise money in any sort of…

Q: DAMIPERA Corporation, a lending institution, provided a loan to LAPERA Company for Php5,000,000 on…

A: On 01.01.2020, DAMIPERA corporation provided loan to LAPERA company = Php5000000 Loan term = 5 years…

Q: A Bank granted a loan to a borrower in the amount of P5,000,000 on January 1, 2021, The interest…

A: Solution Carrying amount is the cost of an asset less accumulated depreciation.

Q: MNO Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 10% payable…

A: Loan receivables refer to the net balance that is being held in the borrower's account in the books…

Q: On January 1, 2020, Empress Bank granted a loan to a borrower. The interest rate on the loan is 10%…

A: As per IFRS 9, Financial instruments, the financial asset recognized at amortized cost is initially…

Q: On December 31, 2020, Chase Bank has a 5-year loan renewable with a face value of $5,000,000 dated…

A: 5 year Loan               = $5000000 Accrued Interests       =   $500000 Total receivable…

Q: Entei Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Here in this question we are required to find out the total interest income to be presented on the…

Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of…

A: Formula: Interest expense = Loan amount x Interest rate x Time period

Q: At the end of 2022, the following information is available for Great Adventures.• Additional…

A: Introduction   “Since you have posted a question with many sub-parts, we will solve three sub-parts…

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A: Installment note: Installment note is an obligation in which the defaulter needs to repay the…

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A: Loan Outstanding =$ 141,000 Interest rate = 6% p.a  6% interest p.a. is given so one month's…

Q: Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the…

A: “Since you have posted a question with multiple subparts, we will be solving the first three…

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A: Initial measurement amount=1000000-55200+30770 =975570

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A: Initial measurement of loan receivables on Jan 1, 2020 should be made as follows:   Amount…

Q: er 31, 2020. The loan matures in three years on December 31, 2022. Principal amount 5,000,000 Direct…

A:

Q: On January 1, 2020, Vaughn Manufacturing borrows $ 3150000 from National Bank at 12% annual…

A: Computation of Cash inflow and outflow On borrowing 315000, Company has to pay interest of (315000 x…

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A: The initial carrying amount is the amount of loan at which the lender lends the money for a period…

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A: For calculating interest expense, we will need to make amortization schedule of loan over a period…

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A: Accrued interest on loan ( from November 1, 2020 to December 31, 2020 ) = ₱500,000 x 12% x 212 =…

Q: Solid Bank loaned P5,000,000 to a borrower on January 1, 2018. The terms of the loan require…

A:

Q: Suga Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10%…

A: Carrying value=Principal amount+Direct origination cost-Origination fee received from borrower=P…

Q: In the December 31, 2021 balance sheet, what amount of the note payable should Dean report as…

A: Notes payable refers to a promise to pay a certain sum of money to the party at some future date.…

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A: The process of recording business transactions in the books of accounts for the first time is…

Q: On January 1, 2020, a company issued a $30,000 three-year, 4% note payable, repayable in 12…

A: Notes Payable The purpose of taking the Notes payable to the firm to generate adequate liquidity in…

Q: Upon January 1, 2020, Sally Corp. borrowed $360,000 from County Bank and signed a 15-year note…

A: It is simply a fee levied against the borrower for the use of an asset. Borrowed assets might…

Q: On June 1, 2020, Taby Company loaned ₱500,000 on a 12% note, payable in five annual installments of…

A: Accrued interest receivable refers to the amount of loan interest which has been arise but not yet…

Q: On April 1, 2020, Bonita Company assigns $533,000 of its accounts receivable to the Third National…

A: Finance Charge = Accounts receivable  x 3% = $533,000 x 3% = $15,990

Q: All In Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 10%…

A: Digital bank will recognize financial assets in his books

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A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: DBC Company has received a confirmation letter from the First National Bank of Miami (FNBM) about a…

A: 1) Prepare a table calculating average used balance, interest rate applicable, interest on unused…

Q: Moderate Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 10%…

A: Carrying or book value is the worth of the asset or any debt when it is purchased.

Q: Suicune Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Effective Interest Rate- The effective rate of interest is the interest rate that can be paid or…

Q: At the end of 2022, the following information is available for Great Adventures.   Additional…

A: Accounts to be closed : Sales revenue = $ 20000 Interest expense = $ 805 Insurance expense / Lawsuit…

Q: On April 1, 2020, Bonita Company assigns $533,000 of its accounts receivable to the Third National…

A: journal entry for cash collected from accounts recievable =  cash account XX     To Accounts…

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A: Step 1 An amortized loan is a loan accounting over the tenure of loan subject to the cash flows over…

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A: A should recognize $1200,000 as impairment losses for the current year in the statement of…

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A: Loans Receivable It is important to keep the track on the loan receivable which is one of the…

Q: Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the…

A: In this problem we have to first calculate 10 equal instalments.We have to calculate present value…

Q: Milton Company borrowed $95,000 on January 1, 2020, by signing a 6% promissory note. The note is to…

A: The question is based on the concept of Financial Accounting.

Q: On July 1, 2021, ABC Co. borrowed P1,000,000 and issued a one-year note payable. The lender…

A: According to this question, we prepare the journal entries with reference to the given scenarios.…

Q: Use the information presented below in answering questions 11-15.   On December 31, 2018, Tina…

A: "As per the policy of our company, we are allowed to answer only the first three sub-parts in case…

Q: MNO Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 10% payable…

A: Carrying value of loan on January 1, 2020 =Principal value of loan +Direct orgination cost…

Q: On July 1, 2020, ABC Company issued a five-year note payable with a face amount of P5,000,000 and an…

A: Balance sheet means where all assets , liabilities and capital is shown. Current liability means the…