Reference no: EM132836173
Problem - Global Bank loaned P9,000,Q00 to a borrower on January 1, 2018. The terms of the loan were payment in full on January 1, 2023, plus annual interest payment at 12%.
The interest payment was made as scheduled on January 1, 2019. However, due to financial setbacks, the borrower was unable to make the 2020 interest payment.
The bank considered the loan impaired and projected the cash flows from the loan on December 31, 2020.
The bank has accrued the interest on December 31, 2019, but did not continue to accrue interest for 2020 due to the impairment of the loan. The projected cash flows are:
|
Date of cash flow
|
Amount projected on December 31, 2020
|
|
December 31, 2021
|
1,500,000
|
|
December 31, 2022
|
2,000,000
|
|
December 31, 2023
|
2,500,000
|
|
December 31, 2024
|
3,000,000
|
The present value of 1 at 12% is .89 for one period, .80 for two periods, .71 for three periods, and .64 for four periods.
Required -
A. Compute the Impairment Loss on 2020.
B. Compute the Allowance For Loan Impairment on Dec 31, 2020.
C. Compute the Carrying amount of the Loan on Dec 31, 2020.
D. Compute the Carrying amount of the Loan on Dec 31, 2021.
E. Compute the Carrying amount of the loan on Dec 31, 2022.
F. Journal Entries from 2020-2022.
|
Statistics presented in readings and resources
: Consider the statistics presented in the readings and resources. Choose a statistic that surprised you the most.
|
|
Explain business-related etiquette
: Explain business-related etiquette, norms and behaviors, as they may relate to local customs, traditions, and business practices.
|
|
Exceptions to employment-at-will
: What are some of the exceptions to "Employment-at-Will"?
|
|
The job is to enter labor rates
: The job is to Enter Labor Rates, material costs for project into Microsoft Project to compute overall project costs and project costs by high level WBS element.
|
|
Compute the Allowance For Loan Impairment on Dec
: Global Bank loaned P9,000,Q00 to a borrower on January 1, 2018. Compute the Allowance For Loan Impairment on Dec 31, 2020
|
|
What is the amount of Tatum recognized gain
: The farmland had a basis of $250,000, a fair market value (FMV) of $400,000, What is the amount of Tatum recognized gain
|
|
BUSN6004 Managing Information Systems Assignment
: BUSN6004 Managing Information Systems Assignment Help and Solution, Southern Cross University - Assessment Writing Service
|
|
Determining the success of this cross-border alliance
: You have been asked to produce a report on the success of this cross-border alliance. What would be the key factors for determining the success of this cross-bo
|
|
Impact of globalization-technology and diversity
: An example from your workplace, school, or community where you have noticed the impact of globalization, technology, and diversity.
|