MNO Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 10% payable annually starting December 31, 2020. The loan matures in three years on December 31, 2022. Additional information is as follows: Principal amount of P5,000,000; Direct origination cost incurred for P100,000; Indirect origination cost incurred for P50,000 and Origination fee received from the borrower was P340,000. After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. Compute for the carrying amount of the loan receivable on December 31, 2020

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

A:

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

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

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

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

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A: An amortizing loan is a regular type of installment loan where the regular monthly payment is done…

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A: With respect to the note, the current liabilities section of Moon‘s December 31, 2020 statement of…

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A: Calculation of the amount to be included in current liabilities section::: With respect to the note,…

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A: Long-term debt is a liability to be repaid after one accounting year. It is also called non-current…

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

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A: First, calculate the carrying value of borrowed amount: Carrying amount=Principle amount+Direct…

Q: On February 10, 2021, after issuance of its financial statements for 2020, Ikli Company entered into…

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

Q: What amount of the payment made on January 1, 2022 will be interest expense?

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

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A: The impairment loss on the financial assets arises if the fair value of financial assets is lower…

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

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A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: RED Corporation

A: Current liabilities square measure a company's short-run money obligations that square measure due…

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A:

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A:

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

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

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A: Digital bank will recognize financial assets in his books

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

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A:

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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.