What's the best answe for 7-1, 7-2, and 7-3 December 31, 2021. The loan matures in three years onPROBLEMSle.Problem 7-1 (IFRS)Nesty Bank granted a loan to a borrower on January 1, 2020.The interest on the loan is 10% payable annually startingivable.to loanDecember 31, 2023.Principal amountDirect origination cost incurredOrigination fee received from the borrower4,000,000150,000342,100After considering the origination fee received from thehorrower and the direct origination cost incurred, the effectiverate on the loan is 12%.fromRequired:- thePrepare journal entries for 2021, 2022 and 2023.Problem 7-2 (IFRS)ostsAwesome Bank granted a loan to a borrower on January 1,2021. The interest rate on the loan is 10% payable annuallystarting December 31, 2021. The loan matures in five yearson December 31, 2025.Principal amountDirect origination costOrigination fee received from borrower4,000,00061,500350,000theThe effective rate on the loan after considering the directorigination cost and origination fee received is 12%.Required:1. Compute the earrying amount of the loan receivable onJanuary 1, 2021.me2. Prepare a table of amortization for the loan receivable.3. Prepare the journal entries for 2021 and 2022. 2021. The interest on the loan is 8% payable annually startingPauper Bank granted a loan to a borrower on January 1December 31, 2021. The loan matures in three years onProblem 7-3 (IFRS)Pauper Bank granted a loan to a borrower onDecember 31, 2023.ProPrincipal amountDirect origination cost incurredSolvent1, 2019P2,0003,000,000260,300100,000The fi31, 20Deceron the loan is 6%.Required:Howfinacolle1. Prepare journal entries for 2021, 2022 and 2023.2. Present the loan receivable on December 31, 2021.Onrercolth

Preparation of journal entries Date Accounts titles and explanation Debit in dollars Credit in…

Origination fee received from the borrower Nasty Bank granted a loan to a borrower on January 1, 2020. December 31, 2021. The loan matures in three years on The interest on the loan is 10% payable annually starting December 31, 2023. Principal amount Direct origination cost incurred Origination fee received from the borrower 4,000,000 150,000 342,100 After considering the origination fee received from the horrower and the direct origination cost incurred, the effective rate on the loan is 12%. Required: Prepare journal entries for 2021, 2022 and 2023.

Origination fee received from the borrower Nasty Bank granted a loan to a borrower on January 1, 2020. December 31, 2021. The loan matures in three years on The interest on the loan is 10% payable annually starting December 31, 2023. Principal amount Direct origination cost incurred Origination fee received from the borrower 4,000,000 150,000 342,100 After considering the origination fee received from the horrower and the direct origination cost incurred, the effective rate on the loan is 12%. Required: Prepare journal entries for 2021, 2022 and 2023.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 94PSA

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