Reference no: EM132828517
Questions -
Q1. LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an electrical generator costing 700,000 for 1,000,000. The buyer paid 100,000 down and signed a 900,000 non-interest bearing note payable in three equal installments starting May 31, 2021. Assume the prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. How much is the Gross revenue on the sale?
Q2. LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an electrical generator costing 700,000 for 1,000,000. The buyer paid 100,000 down and signed a 900,000 non-interest bearing note payable in three equal installments starting May 31, 2021. Assume the prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. How much is the Unearned interest income on May 31, 2020?
Q3. LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an electrical generator costing 700,000 for 1,000,000. The buyer paid 100,000 down and signed a 900,000 non-interest bearing note payable in three equal installments starting May 31, 2021. Assume the prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. How much is the Interest income for the year ending December 31, 2021?
Q4. M&M Bank granted a loan to a borrower on April 1, 2020. The interest on the loan is 10% payable annually starting March 31 2021. The loan matures in three years on March 31, 2023. Data related to the loan are: Principal amount - 4,000,000; Origination fees charged against the borrower - 342,100; Direct origination cost incurred - 150,000. After considering the origination fees charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. What is the Carrying value of the loan as of April 1, 2020?
Q5. M&M Bank granted a loan to a borrower on April 1, 2020. The interest on the loan is 10% payable annually starting March 31 2021. The loan matures in three years on March 31, 2023. Data related to the loan are: Principal amount - 4,000,000; Origination fees charged against the borrower - 342,100; Direct origination cost incurred - 150,000. After considering the origination fees charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. What is the Interest received ending December 31, 2020?
Q6. M&M Bank granted a loan to a borrower on April 1, 2020. The interest on the loan is 10% payable annually starting March 31 2021. The loan matures in three years on March 31, 2023. Data related to the loan are: Principal amount - 4,000,000; Origination fees charged against the borrower - 342,100; Direct origination cost incurred - 150,000. After considering the origination fees charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. What is the Interest income ending December 31, 2020?
Q7. M&M Bank granted a loan to a borrower on April 1, 2020. The interest on the loan is 10% payable annually starting March 31 2021. The loan matures in three years on March 31, 2023. Data related to the loan are: Principal amount - 4,000,000; Origination fees charged against the borrower - 342,100; Direct origination cost incurred - 150,000. After considering the origination fees charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 12%. What is the Carrying value of the loan as of March 31, 2021?