with a book and fair value of P50,000 and P30,000, respectively. bank receive if unsecured creditors receive 25% of their claims?
Q: National Bank granted a 10-year loan to Abbo Company in the amount of P1,500,000 with a stated…
A: Carrying Value at closing = Note receivable + Direct Origination Cost - Non refundable Origination…
Q: The company purchased the equipment 600,000. The interest rate of bank is 12,400. The loan is…
A: Answer The interest rate bank = 12,400 The spot rate of OMR = 2.50
Q: On December 1, 2020, Lieza Mae assigned on a non notification basis accounts receivable of…
A: Current liability represents the obligation that has to be paid within a year.
Q: On June 30, 2021, VKS Company factored P2,500,000 of accounts receivable for P2,250,000. The…
A: Loss on factored = (Accounts receivable - allowance for uncollectible accounts) - Amount received =…
Q: On January 31$t, 2021, X Co. transfers $400,000 in receivables to Cater Finance with recourse. Cater…
A: Amount Retained by Cater Finance: Factored Receivables $ 400,000 10% of Factored…
Q: Brothers Corporation borrows P70,000.00, annual interest rate of 19% is deducted in advance. What is…
A: Gross borrowing = P 70,000 Interest advance deduction = 19%
Q: Take me to the text Suppose a business receives a $907,000 long-term bank loan on December 31, by…
A: Liabilities are classified as: Current liabilities Long -term liabilities Current liabilities-…
Q: On October 31, 2020, JP Company engaged in the following transactions: Obtained a P500, 000, six…
A: Here account receivable is given as pledge upto P500000
Q: 15000 php was loaned from a bank. The choices below show four possible borrowing schemes that the…
A: Solution- First alternative Semi annual payment =3844.22 PHP Number of payments=24/6=4 Let , semi…
Q: APA, Inc. signed a note payable to its bank for P10,000. Accrued interest on the note on February…
A: Given data, Note payable =P10,000 Accrued interest =P250 Inventory at selling price=P8,000 unsecured…
Q: NOP Co. has agreed to the following loan proposal by a bank: ▪ Stated interest rate of 10% on a…
A: Net proceeds refers to the left out amount after considering all expenses likes commission expenses,…
Q: On January 31, 2019, YZ Company engaged in the following transactions: * Obtained a P500,000,…
A: Amount received from loan = Loan amount - discount = P500000 - (500000 * 12% * 6/12) = P470,000
Q: If the total Accounts Receivable of HAPPY ENTERPRISES is 560,000 and gives its customers a 5%…
A: Accounts Receivable means accounts of those customers to whom business has made credit sales on…
Q: Bank Muscat reported pretax income of OMR 800,000 along with a loan loss provision of OMR 80,000 and…
A: Loan loss provision coverage ratio indicates the level of protection of the bank in respect to…
Q: The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is…
A: The total amount of 208,000 (200000 note payable plus P8,000 in interest) includes the secured…
Q: Aunt May, Inc. had the following receivable financing transactions for the fiscal year ended August…
A: SOLUTION A JOURNAL IS AN COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…
Q: oremost Company received from a customer a one-year, P500,000 note bearing annual interest of 8%.…
A: Step 1 The bank discount rate is based on the instrument's par value and the amount of the notes…
Q: Pepper, Inc. had the following receivable financing transactions in 2021: a) At the beginning of…
A: SOLUTION A JOURNAL IS AN OFFICIAL ACCOUNTING BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…
Q: 1.Explain what deductions are available to PWP for2020/21 in relation to the establishment fee…
A: While calculating the deduction as tax expense, it is to be determined that the expense is tax…
Q: ce of P1,500,000. Under the terms of the sale, the automobile dealer 00,000 cash and a promissory…
A: Maturity Value : It is the estimated income on the amount of investment for a given period. It is…
Q: The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is…
A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…
Q: Company B uses $800,000 of its accounts receivables as collateral when the company borrowed…
A: The accounts receivable refers to the amounts due from customers for the goods and services provided…
Q: Bulldogs Inc. enters into an agreement with a firm that will factor the company's accounts…
A: The correct answer for the above mentioned question is given in the following steps.
Q: company has obtained a short-term bank loan of P500,000 at an annual interest rate of 6 with a…
A: In this we have to determine effective interest rate.
Q: A debtor owes Php 22,000 due at the end of 2 years. He asks his creditors for the privilege of…
A: Given a certain rate of return, present value (PV) is the current cost of a future sum of money or…
Q: Show solutions On December 1, 2021, Autumn company assigned on a non- notification basis accounts…
A: Accounts assigned = accounts receivable X 80% = Php3,000,000 X 80% = Php2,400,000
Q: On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on : 250,000,…
A: Journal entries refers to reporting of business transaction into the books of the entity as well as…
Q: SIX Company, a lending institution lent P2,000,000 at 8.0000% per annum, to LAMANEH, Inc. The loan…
A: Financial instruments are contracts that can be bought, sold, created, modified, or settled for…
Q: An entity sells goods for ₱150,000 to a customer who was granted a special credit period of 1 year.…
A: The initial measurement of the receivable is represented by the nominal value of the receivable net…
Q: Barry has applied for a loan in the amount of $10,500. A bank figures that Barry will repay the loan…
A: Interest rate refers to the amount of money which the lender charges to the borrower as well as it…
Q: Vaughn Manufacturing assigns $7300000 of its accounts receivables as collateral for a $2.64 million…
A: A business can use its accounts receivables asset as collateral for a loan. A loan that has a…
Q: Persever Company is a dealer in equipment. On December 21, 2021, the enitity sold an equipment in…
A: The present value of total payment = P500000 x 3.99 = 1995000
Q: what is the annual cost of financing? a. 12% b. 17.5% c. 10% d. 14%
A: Solution:- Given, A Company enters into an agreement with a firm that will factor the company's…
Q: Barry has applied for a loan in the amount of $10,500. A bank figures that Barry will repay the loan…
A: Loan amount = $10500 Probability of repayment = 0.93 Probability of default = 0.07 Let the interest…
Q: National Bank granted a 10-year loan to Abbo Company in the amount of P1,500,000 with a stated…
A: The question gives the following information:
Q: A company has borrowed $210,000 under a line-of credit agreement. It must pay a stated interest rate…
A: The loan can be taken from the organized banks and through the local lenders. The lender of the…
Q: Compañía CSB, S.A., requires short-term financing and requests a loan from Banco del Comercio, and…
A:
Q: On January 10th a bank sold a P100,000 certificate of deposit to mature on March 10th and bear…
A: 1. Certificate of Deposit is held for 2 month from January 10 to March 10. 2. Interest rate 5% is…
Q: total cash received
A: Cash Inflow on, 1. Pledge with Yupy bank = P500000 2. Factoring with Yalong finance = P1300000 -…
Q: ompany is contemplating factoring its accounts receivable. The factor will acquire P250,000 of the…
A: solution : Company is contemplating factoring its accounts receivable. The factor will acquire…
Q: On 1 September 2021, ABC Bhd used its receivables totalling RM 350,000 as collateral on a 250,000,…
A: DATE PARTICULARS DEBIT CREDIT 30.09.2019 Finance Charge Dr. 5,000.00…
Q: a. Abc Investment Ltd., plans to borrow Ghc100,000 for a 90-day period from Lloyds Finance Company.…
A: Answer a: Information Provided: Amount borrowed = 100,000 Interest = 5,000 Days = 90
Q: On January 31, 2019, YZ Company engaged in the following transactions: • Obtained a P500,000,…
A: Amount received from loan = Loan amount - discount = P500000 - (500000 * 12% * 6/12) = P470,000…
Q: The Royal Bank pays an interest rate of 0.6% on redeemable GICs and 0.75% on non-redeemable GICs.…
A: Solution:- The Royal Bank pays interest on the amount of GIC held with it. Now, in order to retain…
Q: A trader has made a sale of R75,500 out of which cash sales amounted to R25,500. He showed trade…
A: Accrual basis of accounting states that the expenses and revenues are recorded when they are accrued…
Q: Determine the annual payment on a OMR 500,000 and 12 percent business loan from a commercial bank…
A: given, p=OMR 500,000 r=12% n=5 years
Q: Pearl has trade receivables at the year-end amounting to RM150,000. An irecoverable debt of RM3,500…
A: Solution: balance of allowance account at year end is computed by multiplying the ending trade…
Q: On December 1, 2020, RB Company issued accounts receivable of Php6,000,000 to a bank in exchange for…
A: Account receivables are client balances that have not been paid for services rendered or items…
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- Suppose a firm makes purchases of $3.65 million per year under terms of 2/10, net 30, and takes discounts. What is the average amount of accounts payable net of discounts? (Assume the $3.65 million of purchases is net of discounts—that is, gross purchases are $3,724,489.80, discounts are $74,489.80, and net purchases are $3.65 million.) Is there a cost of the trade credit the firm uses? If the firm did not take discounts but did pay on the due date, what would be its average payables and the cost of this nonfree trade credit? What would be the firm’s cost of not taking discounts if it could stretch its payments to 40 days?The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is scoured by inventory with a book value of P160,000 and a fair value of P120,000. What amount will the bank received if unsecured creditors receive 75% of their claims?Vaughn Manufacturing assigns $7300000 of its accounts receivables as collateral for a $2.64 million 9% loan with a bank. Vaughn Manufacturing also pays a finance fee of 2% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables?
- Tokyo Corporation must pay one of its suppliers P765,000. The bank requires a 15 percent compensating balance on loans to businesses. Due to the absence of funds at the lending bank, Tokyo Corporation must borrow enough to have P765,000.00 available to pay its suppliers after covering the compensating balance. How much must Splash Corporation borrow in order to pay its suppliers P765,000? In your calculations, assume that a year has 360 days. a. P900,000 b. P5,100,000 c. P573,750 d. P765,000 e. P879,750APA, Inc. signed a note payable to its bank for P10,000. Accrued interest on the note on February 28, 2004 amounts to P250. The note is secured by with inventory with a book value of P12,000. The inventory is sold for P8,000 and unsecured creditors receive 30 percent of their claims. The bank should receive the following amount in settlement of the note and interest:Company B uses $800,000 of its accounts receivables as collateral when the company borrowed $5,000,000 4% loan from a bank. To obtain the loan, Company B pays a finance fee of 3% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables? A. $0 B. Loss of $200,000 C. Loss of $150,000 D. Loss of $800,000
- The Premiere Company obtained a short-term bank loan for P1,000,000 at an annual interest rate 12%. As a condition of the loan, Premiere is required to maintain a compensating balance of P300,000 in its checking account. The checking account earns interest at an annual rate of 3%. Premiere would otherwise maintain only P100,000 in its checking account for transactional purposes. Required: Compute for the effective interest rate assuming: a. Loan is not discounted. Loan is without compensating balance. b. Loan is discounted. Loan is without compensating balance. c. Loan is not discounted. Loan is with compensating balance. d. Loan is discounted. Loan is with compensating balance. e. Which of the loan arrangements above is most beneficial to the firm? Justify.A bank agrees to buy three-month forward €500,000 at $1.14/€ from its client and simultaneously sells three-month €500,000 at $1.16/€ to offset the position. Three months later the Euro appreciates to $1.15/€ and the client declares bankruptcy. The following is true, except A At the end of three months, the bank will incur a loss of $5,000 compared to the expected gain. B At the end of the three month, the bank will incur a gain of $5,000 compared to the expected gain. C The current transaction requires the bank In three months to purchase €500,000 in exchange for $570,000. D The current transaction requires the bank In three months to sell €500,000 in exchange for $580,000.On January 1, 2020, Flounder Furniture Ltd. borrowed $3 million (face value) from Aurora Inc., a major customer, through non–interest-bearing note due in 5 years. Because the note was non–interest-bearing, Flounder Furniture agreed to sell furniture to this customer at lower than market price. A 11% rate of interest is normally charged on this type of loan.Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the amount that the note would be recorded at on January 1, 2020. (Hint: Refer to Chapter 3 for tips on calculating.) Please help within Excel
- On January 1, 2020, Flounder Furniture Ltd. borrowed $3 million (face value) from Aurora Inc., a major customer, through non–interest-bearing note due in 5 years. Because the note was non–interest-bearing, Flounder Furniture agreed to sell furniture to this customer at lower than market price. A 11% rate of interest is normally charged on this type of loan.Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the amount that the note would be recorded at on January 1, 2020. (Hint: Refer to Chapter 3 for tips on calculating.) Please show solution in ExcelTokyo Corporation must pay its supplier P500,000. Tokyo Corp's bank has advertised a 270-day loan with simple interest at a rate of 12 percent. On business loans, the bank requires a 20 percent compensating balance. What is the loan's effective annual rate (rEAR) if Tokyo Corporation currently holds no funds with the lending bank? In your calculations, assume that a year has 360 days. a. 12.00% b. 11.35% c. 15.00% d. 11.25% e. 15.27%A company received a 10-year $10 million loan commitment from a bank at a fixed rate of 6.50%. The up-front commitment fee is 30 basis points and the unused portion of the loan is charged 12 basis points. The bank borrows a total of $5 million at the beginning of the year and none thereafter. What is the net cost of borrowing the $5 million? b) Explain how a letter of credit is created in international trade and its conversion to a banker's acceptance (BA).
