payments of P1,000,000 each year for 5 years plus interest Kalibo Bank loaned P5,000,000 to Caticlan Company on Tanuary 1, 2021. The terms of the loan require principal at 8%. The first principal and interest payment is due on January 2022. Caticlan Company made the required payments during 2022 and 2023. However, during 2023 Caticlan Company began to experience financial difficulties, requiring Kalibo Bank to reassess the collectibility of the loan. On December 31, 2023, Kalibo Bank has determined that the remaining principal payment will be collected but the collection of the interest is unlikely. Kalibo Bank did not accrue the interest on December 31, 2023. The present value of 1 at 8%: For one period For two periods For three periods 0.93 0.86 0.79 1. What amount should be reported as loan impairment loss for 2023? a. 410,000 b. 210,000 c. 220,000 d. 2. What amount should be reported as interest income for 2024? 207,200 b. 143,200 c. a. 240,000 d. 0. What is the carrying amount of the loan receivable on December 31, 2024?

payments of P1,000,000 each year for 5 years plus interest Kalibo Bank loaned P5,000,000 to Caticlan Company on Tanuary 1, 2021. The terms of the loan require principal at 8%. The first principal and interest payment is due on January 2022. Caticlan Company made the required payments during 2022 and 2023. However, during 2023 Caticlan Company began to experience financial difficulties, requiring Kalibo Bank to reassess the collectibility of the loan. On December 31, 2023, Kalibo Bank has determined that the remaining principal payment will be collected but the collection of the interest is unlikely. Kalibo Bank did not accrue the interest on December 31, 2023. The present value of 1 at 8%: For one period For two periods For three periods 0.93 0.86 0.79 1. What amount should be reported as loan impairment loss for 2023? a. 410,000 b. 210,000 c. 220,000 d. 2. What amount should be reported as interest income for 2024? 207,200 b. 143,200 c. a. 240,000 d. 0. What is the carrying amount of the loan receivable on December 31, 2024?

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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