Questions:1. The carrying amount of the loan receivable at December 31, 2022 is?2. The interest income to be recognized in 2024 is? Please include solutions. Thank you! Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021.The terms of the loan were payment in full on December 31, 2026 plus annual interest paymentat 8% every December 31. The first interest payment was made on December 31, 2021.However, on December 31, 2021, due to financial difficulties, the borrower informed FreetownBank that it would probably miss the interest payments for the next two years. After that, theborrower expects to resume the annual interest payment but the principal would be paid onDecember 31, 2027 or one year late with interest paid for that additional year. Accordingly, thepayments from the borrower are scheduled as follows:Date of Flow Cash FlowAmount12/31/2022 No interest payment Nil12/31/2023 No interest payment Nil12/31/2024 Interest payment12/31/2025 Interest payment12/31/2026 Interest payment12/31/2027 Interest paymentP 240,000240,000240,000240,0003,000,000Principal payment34. The carrying amount of the loan receivable at December 31, 2022 is:35. The interest income to be recognized in 2024 is:

The bank has granted a loan of P 3000000 on 1st January 2021 at interest rate of 8%. The first…

Answered: Questions: 1. The carrying amount of…

Questions: 1. The carrying amount of the loan receivable at December 31, 2022 is? 2. The interest income to be recognized in 2024 is? Please include solutions. Thank you

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms of the loan were payment in full on December 31, 2026 plus annual interest payment at 8% every December 31. The first interest payment was made on December 31, 2021. However, on December 31, 2021, due to financial difficulties, the borrower informed Freetown Bank that it would probably miss the interest payments for the next two years. After that, the borrower expects to resume the annual interest payment but the principal would be paid on December 31, 2027 or one year late with interest paid for that additional year. Accordingly, the payments from the borrower are scheduled as follows: Date of Flow Cash Flow Amount 12/31/2022 No interest payment Nil 12/31/2023 No interest payment Nil 12/31/2024 Interest payment 12/31/2025 Interest payment 12/31/2026 Interest payment 12/31/2027 Interest payment P 240,000 240,000 240,000 240,000 3,000,000 Principal payment 34. The carrying amount of the…
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