1. CM Company borrowed Php2 000 000 from a bank on June 30, 2015. The loan has an annualinterest rate of 10% and the principal is payable at the end of every quarter amounting toPhp250 000. The first quarterly payment will be on September 30, 2015. Prepare anamortization schedule for 2015 until the loan is fully paid on June 30, 2017.How much interestexpense is incurred in 2015, 2016 and 2017 with respect to this loan?Page 4 of 62. ESD borrowed Php5 million from a bank on September 30, 2015. The loan principal is payableevery six months starting March 31, 2016 at the rate of Php1 000 000. The loan has an annualinterest rate of 10%. Determine the interest expense related to this loan in 2015, 2016, 2017,and 2018.

Amortization table is shown below

Answered: 1. CM Company borrowed Php2 000 000…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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On April 2009, Entity A granted Entity Z a 4 year loan amounting to 5,000,000 of direct loan origination cost and receives nonrefundable origination fees amounting to 500,000. the stated interest is 10% payable annually every december 31. What is the interest income and carrying amount of the loans receivable on March 31, 2010?
Tampa Roofing Company borrows P1,500,000 on December 31, 2021. Under the terms of the loan, Tampa Roofing Company is required to make three equal annual payments. The first payment will be made on December 31, 2022. As of December 31, 2023, how much should be recorded as noncurrent liabilities? O P1,500,000 O $500,000 O P1,000,000 O PO
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On 1 January 2017, a company which prepares financial statement to 30 June each year buys € 400,000 of 5% loan notes for € 411,225. Interest will be received half-yearly on 30 June and 31 December and the loan notes will be repaid at a premium of 10% on 31 December 2020. The effective rate of interest is 3.5% per half year and the company intends to hold this investment until maturity. Calculate the amount of interest income that should be recognised in the company's financial statements for each of the years to 30 June 2017, 2018, 2019. Also calculate the amount at which the loan notes should be shown in the statement
Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms of the loan were payment in full on December 31, 2026 plus annual interest payment at 8% every December 31. The first interest payment was made on December 31, 2021. However, on December 31, 2021, due to financial difficulties, the borrower informed Freetown Bank that it would probably miss the interest payments for the next two years. After that, the borrower expects to resume the annual interest payment but the principal would be paid on December 31, 2027 or one year late with interest paid for that additional year. Accordingly, the payments from the borrower are scheduled as follows: Date of Flow Cash Flow Amount 12/31/2022 No interest payment Nil 12/31/2023 No interest payment Nil 12/31/2024 Interest payment 12/31/2025 Interest payment 12/31/2026 Interest payment 12/31/2027 Interest payment P 240,000 240,000 240,000 240,000 3,000,000 Principal payment 34. The carrying amount of the…
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Use the information presented below in answering questions 11-15. On December 31, 2018, Tina Company, a financing institution lent P4,000,000 to Erika Corporation due three years after. The loan is supported by an 6% note receivable. Transaction costs incurred to originate the loan amounted to P100,000, P466,557 was chargeable to Erika as origination fees. Interest on the loan are collectible at the end of each year. The yield rate on the loan is 11%. Tina was able to collect interest as it became due at the end of 2019 and 2020. During 2021, however, due to Erika Corporation’s business deterioration and due to political instability and faltering global economy, the company was not able collect amounts due at the end of 2021. After reviewing all available evidence at December 31, 2021. Tina determined that it was probable that Erika would pay back only P2,500,000 is collectible as follows: December 31, 2023 0.5M December 31, 2024 1M December 31, 2025 0.6M December 31, 2026…
A present obligation amounting to ₱150,000 is to be repaid for 4 years at a rate of 12% per year. The borrower has three options to repay the money, what would you recommend? a. Pay the interest and principal in one payment at the end of the period. b. Pay interest due to at the end of each period and the principal at the end of the 4th year. c. Pay 50% of the principal at the end of the first year and 50% at the end of the 4th year. The interest will be paid at each end of the year

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