Reference no: EM132935759
Questions -
Q1) The following information is available for the BTS Company on March 31 of the current year:
Bank statement balance, March 31 - P146,570
Note collected by bank, including interest of P2,500, not yet taken up on the books - P62,500
NSF check returned with the bank statement - P21,260
Outstanding checks as of March 31 - P68,470
Bank service charges for March - P1,285
Credit memo for interest credited by bank for the month of March - P105
What is the correct cash balance at March 31?
-P76,815
-P38,145
-P78,205
-P78,100
Q2) On December 31, 2020, the YG Company Finance Company had a P5,000,000 note receivable from SM Entertainment Company. The note bears 12% interest. The books reported accrued interest of P600,000 on this date. Following the Covid-19 pandemic by SM Entertainment Company, YG Company Finance agreed to the restructuring and modification of the terms of its loan to SM Entertainment as follows: - Reduction of principal to P4,000,000 - Reduction of interest to 10% payable annually beginning December 31, 2021. - Accrued interest on December 31, 2020 is condoned; and - Principal payment was reset to December 31, 2022.
How much is the impairment loss?
-1,351,165
-1,278,910
-1,832,160
-1,732,160
How much premium/discount is to be recognized on the date of restructuring?
-132,160 Premium
-130,000 Discount
-132,160 Discount
-130,000 Premium