User Account

All Pages

What is the carrying amount of loan receivable on december

Assignment Help Accounting Basics
Reference no: EM132817102

Solid Bank loaned P5,000,000 to a borrower on January 1, 2018. The terms of the loan require  principal payments of P 1,000,000 each year for 5 years plus interest at 8%.

  • The first principal and interest payment is due on January 1, 2019. The borrower made the required payments during 2019 and 2020.
  • However, during 2020 the borrower began to experience financial difficulties, requiring the bank to reassess the collectibility of the loan.
  • On December 31, 2020, the bank has determined that the remaining principal payment will be collected as originally scheduled but the collection of the interest is unlikely.

The bank did not accrue the interest on December 31, 2020.

Present value of 1 at 8%

For one period 0.926

For two periods 0.857

For three periods 0.794

Problem 1: What is the impairment loss for 2020?

Problem 2: What is the interest income for 2021?

Problem 3: What is the carrying amount of the loan receivable on December 31, 2021?

Reference no: EM132817102

Questions Cloud

Measure the right amount of water : Do you think this friend is going to be able to accurately measure the right amount of water to dissolve the packet into? Why or why not?
Prepare the journal entries for national corporation : Prepare the Journal entries in 2022 and 2023. National Corporation issued a 10-year, 8%, P 800,000 bonds that yield 10% on January 1, 2022.
Ancestor of chordates evolve in the isotonic setting : What are chordates? How did the ancestor of chordates evolve in the isotonic setting? Why?
Differences between facilitated diffusion-active transport : What are the differences between facilitated diffusion and active transport?
What is the carrying amount of loan receivable on december : What is the carrying amount of the loan receivable on December 31, 2021? Solid Bank loaned P5,000,000 to a borrower on January 1, 2018.
Describe the origin of the pain stimuli : -Describe the origin of the pain stimuli and the neural pathways involved in the pain that this man is experiencing.
Calculate the net present value of software update project : Calculate the net present value of a software update project which requires an initial investment of $900,000 (Year 0) and is expected to generate cash inflow
Explain the distribution and mechanisms of the pain : Explain the distribution and mechanisms of the pain, particularly the triggering of the pain by stimuli applied to the skin.
What is meant by an entity financial position : What is meant by an entity's financial position and performance? Discuss the importance of information on an entity's financial position and performance

Reviews

Write a Review

Accounting Basics Questions & Answers

  Ordinary income and statutory income

Ordinary income and Statutory income

  Find what is arlington depreciation deduction

What is Arlington's depreciation deduction for 2020 if its business-use percentage is 75 percent? (Ignore any possible bonus depreciation.)

  Write a brief summary of the AICPA current technologies

You are the accountant for a mid-sized manufacturing company. For your boss, write a brief summary of the AICPA's current 10 technologies

  What would look for in the balance sheet

"If you were an investor, what would you look for in the balance sheet, and how would you know if the statement you were reading was telling the whole story?"

  Calculate the cost of equity using the capm model

Calculate the cost of equity using the CAPM Model. The risk-free rate is 5.6%, the Return on the S& P 500 = 11.6%, MRP = 6% and beta is = 1.2.

  Explain why the profit has declined despite increased sales

There have been no sales price changes or product-mix shifts since the January 1, 20X0, forecast. The only cost variance on the income statement.

  What is Rob and Marie taxable income before QBI deduction

Rob Wriggle operates a small plumbing supplies business as a sole proprietor. What is Rob and Marie's taxable income before the QBI deduction

  How much would have been the total profits

If on December 31, 2021 the capital balances of Noreen and Lani total P250,000, how much would have been the total profits given to Edwin at this time?

  What types of internet positions would you expect

You have been hired to work in the IS area of a manufacturing company that is starting to use the Internet to order parts from its suppliers and to offer sales and support to its customers. What types of Internet positions would you expect to see at ..

  Discuss a subscription method for revenue recognition

what are likely effects on income statement, balance sheet, and statement of cash flow of Apple's choice to use a subscription method for revenue recognition

  What is the cost assigned to land for chot

What is the cost assigned to land? Shortly, after acquisition, the building was razed at a cost of P 9,000 in anticipation of a new building construction.

  Compute the budgeted beginning balance in units

Isaac Company has a selling price of $10 per unit, Calculate the budgeted beginning balance in units for finished goods inventory on November 1

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd