Reference no: EM133020559

Problem 1- On January 1,2020, Tigreal Bank granted a 10%, P3,000,000 loan to Kagura Company. The principal is payable on December 31,2023, and interest payments are at the end of the year. On December 31,2021, Kagura defaulted on the payment of interest, because of financial difficulty. The loan is assessed to be impaired. The annual interest can no longer be collected. Additionally, the principal is to be collected in three annual payments starting December 31,2025. (Round-off OV factors to 3 decimal places)

How much is the impairment loss recognized in 2021?

How much interest income is recognized in 2022?

How much is the balance of allowance for loan impairment on December 31, 2022?

How much interest income is recognized in 2023?

Problem 2- On December 1, 2020, Jawhead Company assigned specific accounts receivable totaling 2,500,000 as collateral on a P2,000,000 12% note from Alice Bank. The entity will continue to collect the assigned accounts receivable. In addition to the interest on the note, the bank also charged a 5% finance fee deducted in advance on the assigned accounts. The December collections of assigned accounts receivable amounted to 1,000,000 less cash discount of 100,000. On December 31, 2020, the entity remitted the collections to the bank in payment, for the interest accrued on December 31, 2020 and the note payable. The entity accepted sales returns of P50,000 on the assigned accounts and wrote off assigned accounts of 150,000.

What amount of cash was received from the assignment of accounts receivable on December 1, 2020?

What is the carrying amount of note payable on December 31, 2020?

What amount should be disclosed as the equity of Jawhead Company in assigned accounts of December 31, 2020?