Answered: with a book and fair value of P50,000…

with a book and fair value of P50,000 and P30,000, respectively. bank receive if unsecured creditors receive 25% of their claims?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Allowance for Doubtful accounts beginning and ending balance of P45,000 and P64,000, respectively.…

A: Bad debts expense/doubtful account expense: Bad debts expense is recognized in the books of the…

Q: which one is correct please confirm? Q1: "I invest GBP500,000 for one year in a deposit which…

A: Future Value(FV) is value of current amount at future point of time. It is computed by compounding…

Q: Bank D gives a loan of RM 30,000 to Shahril with interest rate of 8.25% compounded quarterly.…

A: Compound amount of single sum can be calculated by using this equation A=P(1+r)n Where A= Final…

Q: A bank agrees to buy three-month forward €500,000 at $1.14/€ from its client and simultaneously…

A: A forward is a type of derivative where the parties are obligated to buy or sell the underlying…

Q: 3. When will a single payment of SR 2,200 discharge the debts of (a) SR 500 due in 4 months, (b) SR…

A: Single Payment Amount = 2200 Interest Rate = 9%/12 = 0.75% Debt Payments: Months Cash OutFlow 4…

Q: If a borrower repays RM 11430 at the end of two years, which includes RM 2430 interest at a rate of…

A: Repayment amount = RM 11430 Interest amount = RM 2430 Interest rate = 13.5%

Q: A loan is to be repaid with n level payments of X, where n> 5. The amount of interest in the 1st,…

A: Let the principal in payment 1, 3 and 5 be P1, P3 and P5. Since, the principal repaid, X-interest,…

Q: WHAT AMOUT SHOULD BE RECOGNIZED? Paid cash of P200,000 and issued a note for the purchase of a…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On July 1, 2025, Agincourt Inc. made two sales. 1. It sold land having a fair value of $700,000 in…

A: A promissory note is a legal document where one party (the issuer or maker) promises to pay a…

Q: Only typed solution

A: The objective of the question is to understand the financial transactions of Pharaoh during the year…

Q: On May 1, 2020, Janine Company secured a loan from NorthSouth Bank, P1,250,000 with 1% monthly…

A: Here in this question, we are required to calculate the interest amount and final payment amount.…

Q: hat is the doubtful accounts expense for the year 2021? 2. What is the net realizable value of the…

A: A certain percentage of expected uncollectible amount is derived through historical analysis of the…

Q: On 1/5/2019, the customer deposited an amount of (200,000) dinars as a fixed deposit for a period of…

A: Answer: Fixed deposit amount = 200000 dinars Interest = 200000*8%*6/12 = 8000 When ever any fixed…

Q: Subject: Islamic banking Q): Financing Amount : Rs 100mn (Jan 1), Profit Rate : 16% p.a. Tenor…

A: Financing amount "PV" - Rs. 100 mn Profit rate = 16% p.a Tenor = 1 Now, 4 equal payments in a year…

Q: Your friend borrows PKR 190,000 and promises to repay Rs. 350,000. If you want at least a 12% return…

A: PV = PKR 190,000 FV= PKR 350,000 R= 12%

Q: Bank Sohar declares the profit for the year ended 2019-20. They makes profit: a. When their rate of…

A: Banks main income generated from granting loans to the borrower.

Q: 4. A debt RM2000 bearing 8% interest was repaid with a check for RM2040. For how long was the money…

A: The number of time taken can be calculated using the log function.

Q: On 1 March 2024, Edutech (not a registered VAT vendor) borrowed R338 000 from Futures Bank at an…

A: They go in a separate journal before they’re added to the general ledger and combined with…

Q: Company Z borrows EUR 1 million from the Bank at an annual interest rate of 3,5% for one year. The…

A: Tax shield Interest on the borrowed amount is a tax deductible item. So, it provides savings in the…

Q: OT Company y D decides to factor $60 its accounts receivables with recourse. The factoring company…

A: The accounts receivables means the amount that received in future. The accounts receivables arises…

Q: Company B uses $800,000 of its accounts receivables as collateral when the company borrowed…

A: The accounts receivable refers to the amounts due from customers for the goods and services provided…

Q: Prepare the Statement of Financial Position as of 31 December 2019, for TT Resources Berhad. Account…

A: Balance sheet is also known as the statement of financial position. It shows the assets, liabilities…

Q: The following information were taken from the financial statements of CAMBODIA, INC. on December 31,…

A: Financial liabilities: Its a contractual obligations by the company to pay cash or deliver the…

Q: Repaid a debt of $120 owing to R. Hill. taking advantage of a 10% discount. The debt was paid by a…

A: Cashbook is one of the journal entry book under which all cash transactions are being recorded. All…

Q: A property has an NOI of $288,750 and a value of $4,812,500, the bank will issue a loan based on a…

A: Maximum loan =MIN(4,812,500*75%,PV(5%/12,240,-288,750/1.35*1/12))

Q: Mr. Salim has an overdraft limit of RO 40,000 with Bank Muscat. Today the debit balance in the…

A: Overdraft means that you don't have funds in your account but bank still provides you money.

Q: How much money will the bank need to loan a purchaser using a 20% down payment on a $180,000…

A: Loan provided must be equal to the purchase price minus the down payment on the purchase.

Q: Barry has applied for a loan in the amount of $10,500. A bank figures that Barry will repay the loan…

A: Interest rate refers to the amount of money which the lender charges to the borrower as well as it…

Q: The trust for APA, Inc. prepares a statement of affairs which shows that unsecured creditors whose…

A: Employees are treated as priority creditors and need to be paid before any payment is made to…

Q: SureWin Company owes an amount of debt to a bank and the bank proposed the following annual payments…

A: The Present Value of a cash flow series: The present value of a cash flow series is calculated as…

Q: The interest on a loan of R2 000 to be repaid

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: It should be in fall 2021 Pakistan

A: Zakat is a charitable donations made by Muslims .It is calculated as the 2.5% of the surplus wealth.…

Q: Jasmine Traders is a home and nursery centre located in Johannesburg. Jasmine Traders is having…

A: A client issues a debit note to the supplier in case he wants a refund, there may be various reasons…

Q: The following are the balances stood in the books of Middle East Bank Limited for Year 2020. OMR OMR…

A: Balance Sheet is a statement showing balances of Real and Personal Accounts in a systematic manner.…

Question

1 The Metro Bank loaned P40,000 to llocano Company. The loan is secured by inventory
with a book and fair value of P50,000 and P30,000, respectively. What amount will the
bank receive if unsecured creditors receive 25% of their claims?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Drama plc has a total balance on their receivables account at the year end of £54,500. After reviewing their customer accounts, Drama plc have decided to do the following: make a 50% specific provision relating to a debt of £9,200 create a general receivables provision of 2% Drama plc have a receivables provision brought forward of £2,850. What will be the value of the general receivables provision?£ 906 What will be the irrecoverable debt expense on the P or L? £ 2660 (Enter the values with no E sign, comma or decimal places)
A lender lends $10000 which is to be repaid in annual payments of $2100 for 6 years. Which of the following shows the timeline of the loan from the lenders perspective?
a) A bank made a 4-year 12% amortizing $2,500,000 loan with equal payments. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? b) Assume instead the bank demands that the borrower pay interest only for the first two years and then principal payments of $1,250,000 in years 3 and 4. What is the amount of interest and principal paid at the end of the 3rd year? What is the balance on the loan at the end of the 3rd year? Assume the same 12% rate of interest. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Statement of CBSE 2014) Example 26. Medatwal Ltd. obtained loan of ₹ 8,00,000 from Bank of India and issued 10,000 12% Debentures of 100 each as collateral security. Show it in the Balance Sheet of the company (i) if it is a long term loan and (ii) if it is a short term loan. Solution
1. If you want to borrow K150,000 which of the following banks should you select? Explain clearly with necessary calculation. (i) Bank A requires quarterly repayments of K12,872.96 at the end of each quarter over 4 years. (ii) Bank B requires a total repayment of K276,360 at the end of 5 years.
1. kgogo Trading has the following account balances as at 30 June 2019. RM 200,000 6,000 Account Receivable Provision for doubtful debt On 30 June 2019, the following adjustment have to be made: i. Debts of RM500 are to be written off as bad ii. One of the entities with accounts receivable whose debts had previously been written off as bad sent a cheque for RM1,000 in full settlement of the amount owed iii. Provision for doubtful debts is 2% of the outstanding accounts receivables Required: For the year ending 30 June 2019 show the: a) Provision for doubtful debts account b) Statement of Profit or Loss (extract) c) Statement of Financial Position (extract)
Compute for the bank's income if a client will purchase USD375,000 @ P50.76 = $1 based on P50.30 benchmark or based rate. a. P172,500 b. P17,500 c. P1,725 d. P17,250
choose the letter of the correct answer Company A borrows P500,000.00 from the bank and is required to maintain a 15% compensating. Further, Wilson has an unused line of credit of P200,000.00, with a required 11% compensating balances. What is the total required compensating balance the firm must maintain a. P75,000.00b. P22,000.00c. P97,000.00d. P182,000.00
Part 2 Now assume that on December 31, 2023, Sheridan enters into the following transactions related to the company's receivables: 1. 2. Sheridan sells the note receivable to Prairie Bank for $60,000 cash plus accrued interest. Given the creditworthiness of Sheridan's customer, the bank accepts the note without recourse and assesses a finance charge of 3.10%. Prairie Bank will collect the note directly from the customer. Sheridan factors some accounts receivable at the end of the year. Accounts totalling $35,000 are transferred to Skysong, Inc., with recourse. Skysong retains 5% of the balances and assesses a finance charge of 4% on the transfer. Skysong will collect the receivables from Sheridan's customers. The fair value of the recourse obligation is $4,700. Prepare the journal entry to record the transfer of the note receivable to Prairie Bank. (Round answers to O decimal places, e.g. 8,971. Credit account titles are automatically indented when the amount is entered. Do not indent…
An organization loaned $ 14,000.00 from a bank at 9% interest. They will pay a total of $ 20,300.00 within the agreed date of payment. How long will the organization need to pay the amount?
GH Traders wrote off R1 750 which represented 20% of the amount owed by a debtor. The debtor settled the balance on her account by means of an electronic funds transfer. These transactions have not yet been recorded. Which of the following statements is correct in respect of the above transactions? OA. The Debtors Control account will decrease by R7 000. OB. The debtor owed R8 750. OC. The Bank account will be credited with R7 000. OD. The amount received from the debtor was R1 400.