Reference no: EM133012112
Problem 1 - On January 1, 2020, Lunox Bank granted a 12%, P5,000,000 loan to Nana Company. The loan is payable in 5 years. Interest is payable every end of the year. The bank incurred origination costs of P281,100. Nana company was charged P98,500 of origination fees. Present value of 1 at 10% for 5 periods is 0.621; Present value of an ordinary annuity at 11% for 5 periods is 3.696
1. How much is the interest income in 2020?
2. What is the balance of direct origination cost on December 31, 2020?
3. At what amount should the loan receivable be reported in the financial statements on December 31, 2020?
4. At what amount should the loan receivable be initially recognized?
Problem 2 - On January 1, 2020, Tigreal 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.
1. How much is the impairment loss recognized in 2021?
2. How much interest income is recognized in 2022?
3. How much is the balance of allowance for loan impairment on December 31, 2022?
4. How much interest income is recognized in 2023?
|
Determine the amounts at which dunbar ltd would recognise
: Distinguish between the inception date of a lease and the commencement date of a lease. What activities does a lessee undertake on the commencement
|
|
What the cost of units transferred out of the department
: Beginning work in process inventory: (10,000 units; materials 100% complete, conversion 60% complete) $17,500. What the cost of units transferred out
|
|
Calculate the operating cash flow for the repair shop
: Calculate the operating cash flow for the repair shop using the three methods given Add back depreciation tax shield and Dollars in minus dollars out.
|
|
Prepare an income statement for the shop
: Variable costs will be $53,000, and rental costs for the shop are $33,000 a year. Prepare an income statement for the shop based on these estimates.
|
|
What is the balance of direct origination cost on December
: Lunox Bank granted a 12%, P5,000,000 loan to Nana Company.What is the balance of direct origination cost on December 31, 2020
|
|
How the bank is run to borrowers and depositors
: Which type of bank provides a vote on how the bank is run to borrowers and depositors? Savings and loan association./ Mutual savings bank
|
|
What would be the firm return on equity for the year
: What would be the firm's return on equity for the year if the action is taken? It's the last day of the fiscal year of I-Hope-You' re-Not-Too-Desperate
|
|
What is the payback period for this project
: Jobby Ltd is considering whether to purchase a new machine. It will cost $360,000 to purchase and $40,000 to install. What is the payback period
|
|
How much profit did the partnership earned during the year
: A made contributions of 16,000 and capital withdrawals of 24,000 during the year. How much profit did the partnership earned during the year?
|