User Account

All Pages

How much is the balance of allowance for loan impairment

Assignment Help Accounting Basics
Reference no: EM132984507

PROBLEM - On January 1, 2020, Tigreal Bank granted a 10%, P3,000,000 loan to Kagura Company. The principal is payable on December 31, 2023, and interest payments are at the end of the year. On December 31, 2021, Kagura defaulted on the payment of interest, because of financial difficulty. The loan is assessed to be impaired. The annual interest can no longer be collected. Additionally, the principal is to be collected in three annual payments starting December 31, 2025.

Required -

1. How much is the impairment loss recognized in 2021?

2. How much interest income is recognized in 2022?

3. How much is the balance of allowance for loan impairment on December 31, 2022?

4. How much interest income is recognized in 2023?

Reference no: EM132984507

Questions Cloud

Bullying and harassment in construction : Watch the video entitled "Bullying and Harassment in Construction - It's Personal" (6:29 minutes)
Registration for health information management professionals : What are some of the benefits of licensure, certification, and registration for health information management professionals?
Misclassified in terms of one employment status : Identify at least two implications that may arise from being misclassified in terms of one's employment status.
What would be the total relevant costs to make the part : Assume that direct labour is an avoidable cost in this decision. In deciding whether to make or buy the part, what would be the total relevant costs to make
How much is the balance of allowance for loan impairment : On January 1, 2020, Tigreal Bank granted a 10%, P3,000,000 loan to Kagura Company. How much is the balance of allowance for loan impairment
Explain why a study of labour relations is important : Explain why a study of labour relations is important to a prospective relations practioner
What is the growth rate of the expected annual dividend : Compute the current dividend yield. What is the growth rate of the expected annual dividend after year two? Assume the required rate of return is 15%
What is the inventory turnover : The quick ratio is 1.7 while the current ratio is 2.5. The current liabilities amount to 5000. Cost of Goods sold is 52500. What is the inventory turnover
Calculate income effect of the dividends on preferred shares : The net income for the year ended December 31, 2020 was $410,000. Calculate income effect of the dividends on preferred shares

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd