PARTIAL AMORTIZATION SCHEDULEThere may be instances where it is necessary to determine the amortizationdetails of a portion of the schedule. As a result, a Partial AmortizationSchedule is created, as demonstrated in the following example:Clear Circuits Inc., an electrical contracting company, receives a loan of$130,000 at 6% compounded quarterly to purchase some heavyequipment. It must make payments of $5000 at the end of every month tosettle the loan. Construct the Partial Amortization details and schedule for:(i)The First two payments.(ii)The Last two payments.(iii)The Total payment made and interest paid.PaymentAmount Paid Interest Portion#(PMT)(INT)Principal Portion(PRN)Periodic0INT = BAL ((1+i) CY/PY − 1)PRN = PMT-INTPrincipal Balan(BAL)Initial PrincipPayment12Totals

Detailed Explanation:1. Key Information:Loan Amount (Principal, P0P_0P0): $130,000Nominal Interest…

Answered: PARTIAL AMORTIZATION SCHEDULE There may…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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General Computers Inc. purchased a computer server for $58,500. It paid 40.00% of the value as a down payment and received a loan for the balance at 8.00% compounded semi-annually. It made payments of $2,650.41 at the end of every quarter to settle the loan. a. How many payments are required to settle the loan? o payments Round up to the next payment b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places.
Companies may directly expense incremental costs for contracts where the amortization period would be less than one month. less than one year. less than 20 months and contained within 2 fiscal years. more than one year.
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?
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Valley Produce received $50,000 in vendor financing at 7.8% compounded semiannually for the purchase of harvesting machinery. The contract requires equal annual payments for seven years to repay the debt. Construct the amortization schedule for the debt. How much interest will be paid over the seven-year term? (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required.) Payment number 0 1 2 4567 Payment $ Total: Interest portion $ Principal portion $ Principal balance $ 50,000.00
Loan covenants require that E-Gadget Corporation (EGC)generate $200,000 cash from operating activities each year.Without intervening during the last month of the currentyear, EGC will generate only $180,000 cash from operations. What are the pros and cons of each of the followingpossible interventions: ( a ) pressuring customers to payoverdue accounts, ( b ) delaying payment of amounts owingto suppliers, and ( c ) purchasing additional equipment toincrease depreciation?
General Computers Inc. Purchased a computer server for $72,000. It paid 30.00% of the value as a down payment and received a loan for the balance at 7.50 compounded semi annually. It made payments of $2,650.32 at the end of every quarter to settle the loan. A. How many payments are required to settle the loan? compounded
It is important to know how to build an amortization schedule when firms (or individuals) take out bank loans. It all start with calculating the monthly payment using the formula below.using the formula provided, do calculations to confirm the monthly payment for that loan based on the following information Loan amount (P): $60,000 Number of periods (n): 3 years = 36 months Interest (i): 12% per year = 1% per month (should be expressed as 0.01)
On December 31, 2020, ABC Co. purchased a machine under a deferred payment contract where it is required to make 8 annual payments of P140,000 beginning December 31, 2021. IF interest rate is 8%, the purchase price of the machine must be closest to * P1,389,190 P1,120,000 P 868,900 P804,530
Akuse Tours company secures a loan of GHS200,000 over 2 years at 10.5% compounded quarterly year to purchase more tour buses for the upcoming Christmas festivities. Requirements: a. Compute the quarterly installment the entity will be required to pay. b. Prepare a spreadsheet model indicating the installment and the loan amortization schedule.
Shoreline sells a piece of equipment to a corporate customer for $500,000. The cost of the equipment to Shoreline is $375,000. The terms of the sale call for the customer to make equal annual payments over the next three years, with the first payment due 1 year from now. APR is 9%. Variable consideration is already taken into account. Use the following tables to help you amortize and determine revenue and interest on the contract. Under the Installment method, how much gross profit will Shoreline recognize in Year 1? (to the nearest dollar) $0 $45,000 O $38,131 $97,774
Suppose a borrower makes a $100,000 loan with annual payments at a 10 percent rate and a 10-year term. The loan is fully amortizing; however, payments are made on an annual basis to simplify the initial illustration. How the annual loan payment is calculated?

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