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What amount of accrued interest receivable should fanny

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On December 1, 2020, Fanny Co. gave Estes Corp. a P400,000, 12% loan. Estes Received proceeds of P388,000 after the deduction of a P12,000 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of P8,900, beginning January 1, 2021. The repayments yield an effective interest rate of 12% at a present value of P400,000 and 13.4% at a present value of P388,000.

Question 1: What amount of accrued interest receivable should Fanny include in its December 31, 2020 statement of financial position?

Question 2: How much is the carrying amount of the loan receivable on December 31, 2020? (Round-off computations to the nearest peso)

Reference no: EM132912595

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