The company’s loan for P36,000 was approved by the bank on December 31, 2021. The loan will be paid in six-equal quarterly payments. The bank erroneously credited the proceeds of this loan to another borrower’s account. This did not appear as one of the reconciling items in the company’s bank reconciliation as at December 31, 2021. The proceeds of the load is computed as follows: Principal P 36,000.00 Bank Charges ( 2,000.00) Interest ( 3,000.00) P 31,000.00 Required: Adjusting Entries
The company’s loan for P36,000 was approved by the bank on December 31, 2021. The loan will be paid in six-equal quarterly payments. The bank erroneously credited the proceeds of this loan to another borrower’s account. This did not appear as one of the reconciling items in the company’s bank reconciliation as at December 31, 2021.
The proceeds of the load is computed as follows:
Principal P 36,000.00
Bank Charges ( 2,000.00)
Interest ( 3,000.00)
P 31,000.00
Required:
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