How to do a amortization schedule WHAT I CAN DO?Solve and show your solution and explanations in a separate paper.1.CM Company borrowed P 2 000 000 from a bank on June 30, 2015. The loan has an annualinterest rate of 10% and the principal is payable at the end of every quarter amounting to P 25000. The first quarterly payment will be on September 30, 2015. Prepare an amortizationschedule for 2015 until the loan is fully paid on June 30, 2017. How much interest expense isincurred in 2015 and 2016 with respect to this loan?ed bluow doum word150000w roirw pnto bre a is feevei oy tluore o

Loan is an amount which is borrowed from external sources like banks for a specific period. This…

Answered: WHAT I CAN DO? Solve and show your…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
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On December 31, 2016, Rocky Bank has a loan receivable of P4,000,000 from a borrower that it's carrying is at face value and is due on December 31, 2022. Interest on the loan is payable at 9% each December 31. The borrower paid the interest due on December 31, 2016 but informed the bank that it would probably miss the next two years' interest payments. After that, the borrower is expected to resume the annual interest payment but it would make the principal payment one year late, with interest paid for that additional year at the time of principal payment. Round off present value factors up to three decimal points. What is the impairment loss for 2016?
Using the exact method, how much money will be required on July 6, 2016, to repay a loan of $5000 made on September 6, 2007, if interest on the loan is earned at 8.5%/year compounded quarterly?

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