How much was the final payment to the bank

Assignment Help Accounting Basics
Reference no: EM133016348

Problem - On May 1, 2020, Janine Company secured a loan from NorthSouth Bank, P1,250,000 with 1% monthly interest. As a security, all (P2,500,000} of the accounts receivable of the entity was pledged to the bank. Collections in May amounted to P700,000, which was remitted to the bank at the end of the month in payment of the Interest and partial payment of the principal. During June, the entity collected P850,000 of the receivables and settled the loan in the bank.

Required -

1. How much is the total interest expense incurred in 2020?

2. How much was the final payment to the bank?

Reference no: EM133016348

Questions Cloud

What is the expected return on your new portfolio : The risk-free rate is 6% and the expected return on the market is 15%. What is the expected return on your new portfolio
Do you believe it is the notion that leadership skills : Do you believe it is the notion that leadership skills are innate to certain individuals? Or do you rather believe that leadership skills can be developed by vi
How to dealing with miscommunication happens in workplace : How to dealing with miscommunication happens in workplace? References are also needed. Thanks in advance
Why would japanese business owners be shocked : Why would Japanese business owners be shocked if women came to a negotiating meeting?
How much was the final payment to the bank : During June, the entity collected P850,000 of the receivables and settled the loan in the bank. How much was the final payment to the bank
What are the challenges for providers : What are the challenges for providers in using this model? HMO
Differences between outsourcing and offshoring : Drawing on the module material, explain the differences between outsourcing and offshoring and discuss whether the notions of outsourcing or offshoring or of bo
What is the carrying amount of the debt investment : Using three decimal places for the PV factor, what is the carrying amount of the debt investment on December 31, 2020?Required to answer
Research jobs that employees input data on a regular basis : Research jobs that employees input data on a regular basis. Why do they input data constantly and what is it use for?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Norman co borrowed 15000 from the local bank in april 1

norman co borrowed 15000 from the local bank in april 1 2012 when the company was started. the note has an 8 percent

  Discuss the components and use of financial analysis

Explain the impact of accounting transactions in financial statements. Discuss the components and use of financial analysis

  Prepare Martinez journal entries for January

The period of benefit is 2 years. Prepare Martinez's journal entries for January 1, 2020, and December 31, 2020 and 2021

  Prepare monthly cash budgets for each of first three months

Kayak Co budgeted the following cash receipts and cash disbursements for the first three months of next year. Prepare monthly cash budgets

  The volume of accounting instructions is already high

The volume of accounting instructions is already high. If things go on like this, where will we be in 20 or 30 years time?- Do you agree with this idea?

  How much insurance expense should harry record

Harry's Pottery paid $9,600 for a two-year insurance policy, How much insurance expense should Harry record on his income statement dated December 31, 20x3

  Prepare an income statement for marv corp

Using accounting practices allowed under U.S. GAAP, prepare an income statement for Marv Corp for the year ended

  Develop a business plan for durango manufacturing company

Determine to Formulate a strategy to improve the opportunities for Durango to reach its revenue goals (i.e., increase revenue by 10% within five [5] years).

  How could companies benefit from this accounting practice

Case Study - Accounting for frequent flyer points: fact or fiction. How could companies benefit from this accounting practice

  What is internal rate of return of launching the new product

The company estimates sales of 8,100 units in each of the next 4 years, What is the internal rate of return of launching the new product

  How are assets typically organized on a balance sheet

How are assets typically organized on a balance sheet? In order of value, with most valuable assets first./ In order of value, with least valuable assets first.

  Make at least two recommendations for improving the accuracy

Make at least two recommendations for improving the accuracy and reliability of the information in the gaps that you have identified.

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!

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