Reference no: EM132836097
Problem - On January 1, 2019, Rogers Company, a calendar-year firm, gave a loan to Bucky Enterprises amounting to P1,000,000 and received a two-year 12%, P1,000,000 note. The note calls for annual interest to be paid each January 2. Rogers collected the interest on January 2, 2020 as scheduled. The company incurred origination cost amounting to P57,851, 40% of which has been charged to Bucky Enterprises. Yield rate on the loan with this arrangement was at 10%.
At December 31, 2020, however, based on Bucky's recent financial problems, Rogers expects to collect only P900,000 of the amount due.
The P900,000 principal amount is expected to be collected in three annual installments on December 31, 2021, 2022 and 2023. Rogers believes that 8% is the market's assessment of the time value of money as of December 31, 2020.
Required -
1) How much should the loans receivable be initially recognized?
2) What is the carrying value of the loans receivable as of December 31, 2019?
3) How much loss should be recognized in relation to the loan on December 31, 2020?
4) Assume that Rogers Company collects the expected payments from Bucky Enterprises, what journal entries should be made on December 31, 2021, 2022 and 2023?
|
Express all line items of statement of comprehensive income
: Using 2019 as the base year, express all line items of the statement of comprehensive income as a percentage of the corresponding base year item
|
|
Provide an example of a current american political
: Provide an example of a current American political, legal or economic system or approach that relies on Utilitarian principles AND explain the relationship of y
|
|
CHC33015 Work with diverse people Assignment
: CHC33015 Work with diverse people Assignment Help and Solution, Apex Training Institute - Assessment Writing Service
|
|
Discuss the causes for shopping cart abandonment
: Discuss the causes for shopping cart abandonment and suggest some solutions.
|
|
What journal entries should be made on December
: Assume that Rogers Company collects the expected payments from Bucky Enterprises, what journal entries should be made on December 31, 2021
|
|
What is the present value of the expected after-tax
: 1. What is the present value of the expected after-tax cost of renting? 2. What is the present value of the expected after-tax cost of owning?
|
|
Discuss health insurance regulation in the united states
: Discuss health insurance regulation in the United States, being sure to include both state and federal regulations
|
|
What is the relationship between p-value
: If the null hypotheses is rejected, what is the relationship between p-value and significance level?
|
|
Calculate return on common stockholders equity
: Ending common stockholders' equity 1,000,000. Based on the preceding information, calculate return on common stockholders' equity
|