Suga Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10% payable annually starting December 31, 2020. The loan matures in five years on December 31, 2024. Principal amount- P4,000,000 Direct origination cost- P61,500 Origination fee received from borrower- P350,000   The effective rate on the loan after considering the direct origination cost and origination fee received is 12%.    What is the interest income for 2020? A. P529,380 B.  P558,000 C. P445,380 D.  P400,000

Q: DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray…

A: Loan origination fees include but are not limited to fees charged to the borrow as prepaid…

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

A:

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: 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: 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: 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 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: 3,000,000 Direct origination cost incurred                                  260,300 Origination fee…

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

Q: ALVR Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 12%…

A: The question requires calculation of interest on December 31 , 2022. Given that , Interest payable =…

Q: How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client…

A: Interest Income  Interest income refers to the amount of money that is paid by the borrower to the…

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

A: Amount Borrowed = $360000 Interest Rate = 4% Fixed Annual Payment = $32379 Interest to be paid on…

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

A: Interest Income for 2021 = Principal amount* interest rate where,  Principal amount = $3,000,000…

Q: On January 1, 2019, Makakaya Co. granted a five year loan to a borrower amounting to P6,000,000. The…

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

Q: Safari Bank granted a loan to a borrower on Jan. 1, 2020. The interest on the loan is 8% payable…

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…

Q: Royal Bank granted a loan to a borrower on January 1, 2019. The interest rate on the loan is 8%…

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

Q: On January 1, 2019 Leroy Inc. signed a 3 year loan for $80,000 with interest rate of 10%.  The loan…

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: What is the carrying amount of the loan receivable on December 31, 2021? National Bank granted a…

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

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: 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: 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…

Q: Royal Bank granted a loan to a borrower on January 1, 2019. The interest rate on the loan is 8%…

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

Q: CPA Bank Co. loaned P4,000,000 to a borrower on January 1, 2018. The terms of the loan require…

A: The carrying value of a loan receivable is the present value of all the expected future receipts…

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: B. MATATAG Bank loaned P5,000,000 to a borrower on January 1, 2019. The term of the loan require…

A: The impairment loss can be defined as a decrease in the net carrying value of an asset that is…

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: current liabilities section

A: The first annual payment of P200,000 is made on June 30, 2020. The balance of note payable will be…

Q: Kalibo Bank loaned P5,000,000 to Caticlan Company on January 1, 2021. The terms of the loan require…

A: A loan refers to the amount that is borrowed by an individual or the company from a bank or any…

Q: What sum of money will be required will be required to discharge a loan of P7,800 on April 1.2020,…

A: The future value of a present value is the value of that amount after taking into account the time…

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: Megabank granted an 8% 3-year loan to Global Company on January 1, 2018. The interest on the loan is…

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

Q: On January 1, 2020, Apple, gave a loan to Samsung Nokia Inc. amounting to P1,000,000 and received a…

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

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: 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: Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms…

A: given, loan amount = $3000,000 which is not paid for first two years.

Q: On January 1, 2021, Tropical Paradise borrows $50,000 by agreeing to a 6%, six-year note with the…

A: A bank is a financial institution which accepts cash or deposits from customers and grants loans to…

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

A: Origination  fees will not form part of loan receivable

Q: How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client…

A: Interest Income - It is the amount of money paid by the borrower over and above the loan amount to…

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

A: Lets understand the basics. For calculating interest payable at the year end, we will need to use…