FINANCIAL ACCT(HARDBK)+MYACCTGLAB>ICB<
W20 Edition
ISBN: 9780136615583
Author: REIMERS
Publisher: PEARSON C
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Chapter 7, Problem 29EA
To determine
Determine and show the amount of notes payable that would be reported on December 31, 2010
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On January 2, 2022, CAKE Finance Inc extended a 10-year P 5,000,000 loan to Candle Company. Interest on the loan is 7% payable annually every December 31. The first interest payment was made by Candle Company on December 31, 2022; However, the credit information obtained by CAKE Finance, Inc for Candle Company as of Dec 31, 2022 indicated a probability of default for the next 12 mos. at 5% and CAKE expected to collect only 90% of the principal loan.What is the amount of allowance for Expected credit losses reported in CAKE Finance Inc statement of financial position on December 31, 2022?
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On January 2, 2022, CAKE Finance Inc extended a 10-year P 5,000,000 loan to Candle Company. Interest on the loan is 7% payable annually every December 31. The first interest payment was made by Candle Company on December 31, 2022; However, the credit information obtained by CAKE Finance, Inc for Candle Company as of Dec 31, 2022 indicated a probability of default for the next 12 mos. at 5% and CAKE expected to collect only 90% of the principal loan.
What is the amount of allowance for Expected credit losses reported in CAKE Finance Inc statement of financial position on December 31, 2022?
On February 10, 2010, after issuance of its financial statements for 2009, House Company entered into a financing agreement with Lebo Bank, allowing House Company to borrow up to P4,000,000 at any time through 2012. Amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. House Company presently has P1,500,000 of notes payable with First National Bank maturing March 15, 2010. The company intends to borrow P2,500,000 under the agreement with Lebo and liquidate the notes payable to First National. The agreement with Lebo also requires House to maintain a working capital level of P6,000,000 and prohibits the payment of dividends on common stock without prior approval by Lebo Bank. From the above information only, the total short-term debt of House Company as of the December 31, 2010 balance sheet date is
00
None of theseNone of these
1,500,0001,500,000
2,000,0002,000,000
4,000,000
Chapter 7 Solutions
FINANCIAL ACCT(HARDBK)+MYACCTGLAB>ICB<
Ch. 7 - Prob. 1YTCh. 7 - Prob. 2YTCh. 7 - Prob. 3YTCh. 7 - If a 1,000 bond is selling for 95.5, how much cash...Ch. 7 - Prob. 5YTCh. 7 - Prob. 6YTCh. 7 - Prob. 7YTCh. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - What is a mortgage?
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