What are the debits and credits for this series transactions

Assignment Help Accounting Basics

Reference no: EM132707521

Question -

A-1) New Century originated high-risk mortgage loans, which they sold to investors with repurchase agreements. Let us assume the following series of transactions:

1) Originated $80 million in loans drawing on credit, with a 1.25% origination fee.

2) Sold the loans to investors for $82 million in cash, paying off the line drawn on to originate the loans.

3) Repurchased 40% of the origination from investors, drawing on credit, and now held for investment. NC paid investors a 2.5% premium on the repurchase.

4) 20% of the repurchased origination was in severe default and required an immediate write off. At the beginning of the year, NC had set-up an allowance for "held for investment" write-offs.

Required - What are the debits and credits for this series of typical transactions for NC?

Reference no: EM132707521

Questions Cloud

What crimes each person may be charged with : Write a 2 page paper analyzing the fact pattern scenario below. Provide a detailed analysis of what crimes each person may be charged with and which defenses.

How do find the three years discount factors : If the PV of $10 a year for three years is $24.65, what is the three years annuity factor? Using your answer above, find the three years discount factors.

Identify alternative and intermediate sanctions : After a defendant receives a guilty verdict, there is more work to be done. This assignment allows you to explore sentencing options as you continue.

Computer incident response team : Discuss why a computer incident response team (CIRT) plan is needed, and its purpose.

What are the debits and credits for this series transactions : NC paid investors a 2.5% premium on the repurchase. What are the debits and credits for this series of typical transactions for NC

What is john annualized holding period return : During this period the stock paid dividends of $4.00 per share. What is John's annualized holding period return (annual percentage rate)?

How do calculate the amount of impairment loss allocated : How do calculate the amount of impairment loss allocated to the three assets, and the carrying amounts of the assets after the allocation.

Discuss the correctional facility staff hierarchy : Discuss the correctional facility staff hierarchy of a correctional facility and the four main goals of correctional staff members. Distinguish between.

Prepare a contribution format income statement : Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet

User Account

All Pages