Details for one of the loan of BB Company that is probably impaired during the period is as follows: - The company made a loan of P40,000,000 to a customer with similar credit risk to BB Company on January 1, 2021. - Interest is receivable on this loan at the end of each year at 2% per annum for the next five years. • The loan was properly recorded and classified as amortized cost. The company made and initial assessment of the loan and the total expected credit losses over the life of the loan was P1,000,000. The discount rate applicable was at 2%. . On January 1, 2021, the probability of default over the next 12 months was 5%. At December 31, 2021, there was a significant increase in the credit risk on the loan made by BB Company, the expert assessed that the total expected credit losses over the life of the loan was increase to P2,200,000. The discount rate applicable was at 2%. Pv Factor 6 decimal places How much is the total impairment loss recognized by BB Company in its Statement of Comprehensive income for period ending December 31?

Details for one of the loan of BB Company that is probably impaired during the period is as follows: - The company made a loan of P40,000,000 to a customer with similar credit risk to BB Company on January 1, 2021. - Interest is receivable on this loan at the end of each year at 2% per annum for the next five years. • The loan was properly recorded and classified as amortized cost. The company made and initial assessment of the loan and the total expected credit losses over the life of the loan was P1,000,000. The discount rate applicable was at 2%. . On January 1, 2021, the probability of default over the next 12 months was 5%. At December 31, 2021, there was a significant increase in the credit risk on the loan made by BB Company, the expert assessed that the total expected credit losses over the life of the loan was increase to P2,200,000. The discount rate applicable was at 2%. Pv Factor 6 decimal places How much is the total impairment loss recognized by BB Company in its Statement of Comprehensive income for period ending December 31?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 49P

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Details for one of the loan of BB Company that is probably impaired during the period is as follows: The company made a loan of P40,000,000 to a customer with similar credit risk to BB Company on January 1, 2021. Interest is receivable on this loan at the end of each year at 2% per annum for the next five years. The loan was properly recorded and classified as amortized cost. The company made and initial assessment of the loan and the total expected credit losses over the life of the loan was P1,000,000. The discount rate applicable was at 2%. On January 1, 2021, the probability of default over the next 12 months was 5%. At December 31, 2021, there was a significant increase in the credit risk on the loan made by BB Company, the expert assessed that the total expected credit losses over the life of the loan was increase to P2,200,000. The discount rate applicable was at 2%. How much is the balance of the allowance for credit losses as of December 31, 2021?
What amount of gain should be reported as a result of the modification of terms under ifrs?
An entity had an outstanding loan of P3,000,000. The loan has an effective interest rate of 12%. On December 31, 2019, the entity was experiencing financial difficulty and entered into a restructuring agreement with a bank under the following modifications: reduce the principal balance by 20%, extend the maturity date from December 31, 2019 to January 1, 2023 and reduce the interest rate to 10%. Interest is payable annually every December 31. There was no accrued interest as December 31, 2019. The present value factors of 1 for three periods at 10% and 12% are 0.751 and 0.712, respectively. The present value factors of an ordinary annuity for three periods at 10% and 12% are 2.487 and 2.402, respectively. 35. What amount of gain should be reported as a result of the modification of terms under IFRS? a. P720,000 b. P600,720 C. P714,720 d. PO 36. What amount of interest expense should be reported for the year ended December 31, 2020? a. P274,234 b. P240,000 c. P239,928 d. P288,000
The following information are provided by Narra Company on its fiscal year ending October 31, 2020.• P4,000,000 Loans Payable, with P1,000,000 payable semiannually every March 31 and September 30. Related covenants were breached but the creditor signed a waiver on October 29, 2020 as to the loan being payable on demand. As such, the loan will continue to be paid in the original manner.• P8,000,000 Bonds Payable, maturing on November 30, 2021.• P2,000,000 3-Year Notes Payable, maturing on January 21, 2021. the debtor has the unconditional right to defer settlement of the note by nine months. How much is the total current liabilities and non-current liabilities?
1. Compute the present value of the loan receivable on December 31, 2021. 2. Compute the impairment loss to be recognized on December 31, 2021. 3. Prepare journal entries from 2021 to 20
On January 1, 2018, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterest-bearing note requiring $25,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. Thecompany’s fiscal year-end is December 31.Required:1. Prepare the journal entry to record the acquisition of the tractor. Round computations to the nearest dollar.2. How much interest expense will the company include in its 2018 and 2019 income statements for this note?3. What is the amount of the liability the company will report in its 2018 and 2019 balance sheets forthis note?
On January 1, 2024, Byner Company purchased a used tractor. Byner paid $2,000 down and signed a noninterest-bearing note requiring $29,000 to be paid on December 31, 2026. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Prepare the journal entry to record the acquisition of the tractor. How much interest expense will the company include in its 2024 and 2025 income statements for this note? What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note?
A bank loan of $800,000 was obtained byPWP Ltd on 1 August 2020 to purchase itsbusiness office, warehouse and factory andan upfront establishment fee of $8,000 waspaid on that date. The period of the loan waseight years and the bank charged interest atthe rate of 10 percent. 1.Explain what deductions are available to PWP for2020/21 in relation to the establishment fee andinterest paid on the bank loan. 2.What deductions would be available if PWP repaidthe $500,000 loan in full-on 30 June 2022?
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On Jan. 1, 2021, Yumi Co. settled a P 1,000,000 loan payable with an unamortized discount of P 20,000 and accrued interest of P 90,000 by transferring to the lender old equipment with cost of P 3,000,000, accumulated depreciation of P 2,200,000 and fair value of P 900,000. How much gain on extinguishment of debt is to be recognized? a. P 270,000b. P 290,000c. P 250,000d. P 150,000
In the case of the notes payable due to bank, supposing the entity has the discretion to refinance theobligation for at least 12 months after the given maturity date, as seen in its loan agreement,A. Compute for the current liabilities as of December 31, 2021.B. Compute for the non-current liabilities as of December 31, 2021.
Assume that Waterway Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2020, one of Waterway’s creditors, the National American Bank, determined that Waterway would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. The loss is estimated to be $239,300.What entry should National American Bank make to record this loss?