On January 1, 20x1, SUBDUE Co. borrowed 10%, P4,000,000 loan from CONQUER Bank. Principal is due onJanuary 1, 20x4 but interests are due annually starting January 1, 20x2. SUBDUE was charged by the bank a3% nonrefundable loan origination fee representing service fee. How much is the carrying amount of the noteon initial recognition?

Bank service fees = Loan amount x 3% = 4000000 x 3% = 120,000

Answered: On January 1, 20x1, SUBDUE Co. borrowed…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

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

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