DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray 1,2020. The loan has a term of 5 years with interest collectible annualy at 10%. Payment of principal will be equal installments at end of the year Direct origination cost 20,445 Origination fee 80,309 Effective interest rate 10.50% Requirement: - Prepare the journal entry
DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray 1,2020. The loan has a term of 5 years with interest collectible annualy at 10%. Payment of principal will be equal installments at end of the year Direct origination cost 20,445 Origination fee 80,309 Effective interest rate 10.50% Requirement: - Prepare the journal entry
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray 1,2020. The loan has a term of 5 years with interest collectible annualy at 10%. Payment of principal will be equal installments at end of the year
Direct origination cost 20,445
Origination fee 80,309
Effective interest rate 10.50%
Requirement:
- Prepare the
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