Reference no: EM133019175
PROBLEM 1 - 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.
1. What amount of accrued interest receivable should Fanny include in its December 31, 2020 statement of financial position?
2. How much is the carrying amount of the loan receivable on December 31, 2020? (Round-off computations to the nearest peso)
PROBLEM 2 - Selena, Inc. borrowed from Karina Bank under a 10 year loan in the amount of P300,000 with a stated interest rate of 6%. Payments are due monthly, and computed to be P3,330. Karina Bank incurs P8,000 of direct loan origination cost and P4,000 of indirect loan origination costs. In addition, Karina Bank charges Selena, Inc. 4% nonrefundable loan origination fee. At what amount should the loan receivable be initially recognized by Karina Bank?
PROBLEM 3 - On December 1, 2020, Thamuz Co. Gave Harith Co. a P400,000, 11% loan. Thamuz paid 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 P8,620, beginning January 1, 2021. The repayments yield an effective interest rate of 11% at a present value of P400,000 and 12.4% at a present value of P388,000. What amount of income from this loan should Thamuz report in its 2020 income statement?
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Calculate the maturity value of the note
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What amount of income from this loan should Thamuz report
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