at are the forms and characteristics of hedge accounting Bank B granted on 1.10.20X1 to company D a loan of €200,000 for 10 years with a fixed interest rate of 3%. The loan will be serviced with equal semi-annual installments plus interest that will be paid every 31/3 and 30/09 of each year, while bank B prepares interim financial statements. Wanted: Make the journal entries for the years 20X1-20X2 for company B (for calculations use a period of 90 days for each quart
What are the forms and characteristics of hedge accounting Bank B granted on 1.10.20X1 to company D a loan of €200,000 for 10 years with a fixed interest rate of 3%. The loan will be serviced with equal semi-annual installments plus interest that will be paid every 31/3 and 30/09 of each year, while bank B prepares interim financial statements. Wanted:
Make the
(for calculations use a period of 90 days for each quarter and 360 days for the year)
Accounting for Loan, Loan is the debt which an organization took to meet up the funds requirement for different purposes.
Bank loan is the kind of loan which at the initial stage determined its functionalities of payment structure.
In the current case a bank loan does have a fixed rate of interest payment on outstanding amount and equalized payment of principal payment in a 10 years time frame in semi annual installments.
Hence, Installment shall consist equal amount of principal Repayment plus interest component on outstanding amount.
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