Express Jet borrows $100 million on October 1, 2021, for one year at 6% interest. For what amount does Express Jet report interest expense for the year ended December 31, 2022?a. $0. b. $4.5 million. c. $1.5 million. d. $6 million.

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: Mermaid Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 12%…

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

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

A: The carrying value of the loan is calculated by discounting the future cash flows from the loan at…

Q: On January 1, 2021, Cullumber Corp. borrows $9,000 by signing a 3-year, 3% note payable. The note is…

A: Period Cash payment Interest expense at 3% Reduction of principal Principal balance Jan 1, 2021…

Q: What is the carrying amount of the loan receivable on December 31, 2021?

A: Carrying amount of the loan receivable is the amount of loan which is due and the present value of…

Q: On September 1, 2021, Southwest Airlines borrows $40 million, of which $8.0 million is due next…

A: Total Liabilities  to be recorded as on 31 December, 2021 is $ 40,000,000  Refer step2 for…

Q: On August 1, 2020, PHINEAS Company borrowed P9,000,000 from a lender, which is to be paid on January…

A: When the loan is borrowed from the lender, the interest charge on the loan or the borrowed…

Q: Parker & Washington, Inc. borrows $120,000 on January 1, 2021. They must pay back the loan, with 6%…

A: Note payable means the instrument which is issued by company acknowledging the debt due by company…

Q: Discount Mart borrows $400,000 on November 1, 2020 with a 6-month loan that has an annual interest…

A: Interest Payable on December 31, 2020 = Amount borrowed x rate of interest x no. of months /12 =…

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

A: Journal entries : On 01.01.2020, Nasty Bank granted a loan to a borrower. Principal amount = 4000000…

Q: On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0%…

A: The note payable is liability for the business. The amount on note payable due in one year is…

Q: A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018…

A: The amount that is borrowed by the company from financial institutions, banks, or by issuing the…

Q: Awesome Bank granted a loan to a borrower on January 1, 2019. The interest rate on the loan is 10%…

A: Given Information, Principal Amount = 4,000,000 Direct origination Cost =$150,000 Origination fees…

Q: akota Company received a $25,000, one year, 9 percent bank loan on October 31, 2018. Interest is…

A: Interest expense is to be treated as the expense of the current year if it is due during the year…

Q: A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: On March 1, 2020, LINGATONG Company has received a P10,000, two year note bearing interest at 12%…

A: Lingatong Company Receive P10,000  Accrued Interest Receivable at 31st Dec,2021 is Interest Expense…

Q: What is the interest income for 2021? Philippine Bank granted a loan to a borrower on January 1,…

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

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

Q: Express Jet borrows $100 million on October 1, 2021, for one year at 6% interest. For what amount…

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…

Q: A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018…

A: The value of debt on Dec 1, 2018 is calculated as present value of debt.

Q: On September 1, 2021, Southwest Airlines borrows $41 million, of which $10 million is due next year.…

A: Current liabilities: Liabilities which have to be paid  within one year or one operating cycle,…

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A: Annual instalment = Amount borrowed / Present value annuity factor (10%, 3 years) = $80,000 /…

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

A: Carrying value: It is the net book value of the asset at the end of the year after deducting…

Q: Chris Garcia Bank granted a loan to a borrower on January 1,2021. The interest on the loan is 10%…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

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A: The carrying amount of loan is calculated by preparing the amortization schedule and considering the…

Q: In connection with this note, how much Jane Co. would pay at March 31, 2019?

A: Given information is: Jane's Donut Co. borrowed OMR 50,000 on March 1, 2018, and signed a one-year…

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

A: A loan is a debt amount granted by banks or other financial institutions to borrowers. The duration…

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: What is the carrying amount of the loan receivable on January 1, 2021? Appari Bank granted a loan to…

A: Solution- The carrying value of loan receivable on January 1,2021  Will be 4000000. Reason: Direct…

Q: Chris Garcia Bank granted a loan to a borrower on January 1,2021. The interest on the loan is 10%…

A: Comment - Multiple Questions Asked 1) Computation of Carrying Amount of Loan Carrying Amount of loan…

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: Accrued income is that income which are earned by the business but the amount is yet to be received…

Q: On December 1, 2021, your company borrowed $30,000, a portion of which is to be repaid each year on…

A: given   On December 1, 2021, your company borrowed $30,000, a portion of which is to be repaid each…

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

Q: Able Inc. borrowed $60,000 on October 1, 2019 and agreed to pay back $75,000 on October 1, 2022. How…

A: Interest: It refers to the charge which is paid by a borrower to the lender for using his funds.

Q: Durango, Inc. borrowed $20,000 on October 1, 2020. Durango will not make any payments on this loan…

A: Total interest for 3 years = Amount owe at the end - amount borrowed = $26000 - 20000 = $6000…

Q: Awesome Bank granted a loan to a borrower, on January 1, 2021. The interest rate on the loan is 10%…

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

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Q: Tampa Roofing Company borrows P1,500,000 on December 31, 2021. Under the terms of the loan, Tampa…

A: Liabilities refer to the financial obligation of the business enterprises, other than the owner's…

Q: PROBLEM: EB Bank granted a loan to a borrower on January 1, 2019. The interest on the loan is 10%…

A: Particulars Amount Principal amount 35,00,000 Direct Origination cost 70,000 Indirect…

Q: On January 2, 2021, Tripod Company receives a government loan of P2,000,000 paying a coupon interest…

A:

Q: Jane's Donut Co. borrowed OMR 50,000 on March 1, 2018, and signed a one-year note bearing interest…

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: On January 1, 2019, Eagle Company borrows $19,000 cash by signing a four-year, 8% installment note.…

A: The loan is a value that is borrowed from external sources like banks and this amount is repaid…

Q: Damoah's Pizza Co. borrowed $200,000 on January 1, 2020, and signed a two-year note bearing interest…

A: Formula: Interest amount = Principal amount x interest rate Multiplying interest rate with principal…

Q: Pam Company borrowed $75,000 on June 1, 2020, by issuing an 11-month, 8% interest-bearing note. The…

A: The note was issued for 11 month on June 1,2020.

Q: On December 1, 2021, your company borrowed $48,000, a portion of which is to be repaid each year on…

A: On December 31, 2021: $48,000 is payable; $6,400 in 2022 and the remaining later. So payable amount…

Q: On September 30, 2022 World Company borrowed P1, 000, 000 on a 9% note payable. The entity paid the…

A: >Note Payables are the liabilities. >It can be issued in case of: --when goods are…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.