User Account

All Pages

How much is the interest income for the year

Assignment Help Accounting Basics
Reference no: EM133093464

Questions -

Q1. RM Beach Bank loaned Dynamite Company P7,500,000 on January 1, 2018. The terms of the loan were payment in full on January 1, 2023 plus interest payment at 11%. The interest payment was made as scheduled on January 1, 2019. However, due to financial setbacks, Dynamite was unable to make its 2020 interest payment. RM Beach considers the loan impaired and projects the cash flows from the loan as of December 31, 2020. Assume that the bank accrued the interest at December 31, 2019, but did not continue to accrue interest due to the impairment of the loan. The projected cash flows are: December 31, 2021- P500,000; December 31, 2022- P1,000,000; December 31, 2023- P2,000,000; December 31, 2024- P4,000,000. Using two decimal places for the present value factor, how much is the loan impairment loss on December 31, 2020?

a. P5,360,000

b. P2,140,000

c. P2,240,000

d. P2,965,000

Q2. On January 1, 2019, Coco Company sold a building for P5,000,000 to Macao Company. Macao Company paid P500,000 down and signed a noninterest-bearing notes for the balance which is payable in 3 equal annual installments every December 31 of each year. The carrying value of the building is P4,200,000. Assume the prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. How much is the interest income for the year 2019?

a. P540,000

b. P600,000

c. P492,324

d. P432,324

Reference no: EM133093464

Questions Cloud

What the profit made by mary variety for the month : Mary pays $2,000 every month to rent the store from her landlord. What the profit made by Mary's Variety for the month
What sigma level is the process operating : At what sigma level is the process operating? Show your calculations and reasoning.
What is the present value of the firm : Using a discount rate of 8%, what is the present value of the firm? What is the present value if the terminal value is based on 10 times Year 5 earnings
Maintain the same level of net income : Vaughn reported the following results from the sale of 5000 units in May: sales $390000, variable costs $270000, fixed costs $90000, and net income $30000.
How much is the interest income for the year : The present value of an ordinary annuity of 1 for three periods is 2.4018. How much is the interest income for the year 2019
Novel and adaptive thinking : What was the BEST part/your favorite part of working in a group? What did you like about it? Give an example
Training directly affect work force diversity : How do recruitment, selection, orientation and training directly affect work force diversity?
Learned about organizational leadership : Do a reflective thinking which highlights what you learned about organizational leadership and how you can apply these learnings to your future as a leader.
What is the expected portfolio return : What is the expected portfolio return? Based on your results in parts (a) and (b), would you be willing to keep this portfolio? Explain

Reviews

Write a Review

Accounting Basics Questions & Answers

  Annual reports for the coca-cola company and pepsico

Using 2007 annual reports for The Coca-Cola Company and PepsiCo, Inc., answer the following questions. Write these up in a Word document, clearly identifying your response to each lettered item. Show supporting calculations for the items lettered ..

  Prepare the entry to record the issuance of the bonds

Assume the same facts as part (a), except that the warrants had a fair value of $22. Prepare the entry to record the issuance of the bonds and warrants

  Discuss the value relevance of this mergers

Question - Company X currently operates in the retail industry. Discuss the value relevance of this mergers and acquisition decision

  Indicate the combined effect of the errors on expenses

Indicate the combined effect of the errors on (a) revenues, (b) expenses, and (c) net income for the year ended January 31, 2012

  Determine what the net income would have been

Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/2% of net sales

  What is the cost per unit that should be reflected

The applicable tax rate for this purchase is 6% (5% VAT and 1% EWT). What is the cost per unit that should be reflected in the books of DA

  During the year brandi had the following transactions a

during the year brandi had the following transactions a long-term capital gain from the sale of land a short-term

  What is the total flexible-budget variance

A consulting firm estimated the total volume for vacuum cleaners of the Zenith and House-Helper category to be 250,000 units, What is the total flexible-budget

  Apocalyptica corp pays a constant 975 dividend on its stock

apocalyptica corp. pays a constant 9.75 dividend on its stock. the company will maintain this dividend for the next 11

  Prepare the journal entries to record these transactions

Prepare the journal entries to record these transactions on Allied Company's books using a periodic inventory system.

  The following condensed income statements of the jackson

the following condensed income statements of the jackson holding company are presented for the two years ended december

  Compute what amount will dudas report the bonds

Compute what amount will Dudas report the bonds on its December 20X4 statement of financial position?The market value of the bonds on December 31, 20X4

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