On January 1, 2021, Hestia Bank extended a 12%, P1,000,000 loan to Ares, Inc. Principal is due on January 1, 2025 but interests are due annually every January 1. Hestia Bank incurred direct loan origination costs of P88,394 and indirect loan origination costs of P18,000. In addition, Hestia Bank charged Ares, Inc. a P25,000 nonrefundable loan origination fee. How much is the interest income in 2022?
On January 1, 2021, Hestia Bank extended a 12%, P1,000,000 loan to Ares, Inc. Principal is due on January 1, 2025 but interests are due annually every January 1. Hestia Bank incurred direct loan origination costs of P88,394 and indirect loan origination costs of P18,000. In addition, Hestia Bank charged Ares, Inc. a P25,000 nonrefundable loan origination fee. How much is the interest income in 2022?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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