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    ACCOUNTS RECEIVABLES 7-8 - Sheet1-2

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    Astrid Aboitiz
    A bank granted a 5 million loan over 5 years at 8% interest. By 2024, 3 million was outstanding plus 240k in accrued interest. The present value of future cash flows was 2.58 million, resulting in a 660k impairment loss. Journal entries were made for the loan, interest payments through 2024, and the impairment loss. The amortization schedule shows payments through 2027 with interest and principal allocations.

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    ACCOUNTS RECEIVABLES 7-8 - Sheet1-2

    Uploaded by

    Astrid Aboitiz
    26 views3 pages
    A bank granted a 5 million loan over 5 years at 8% interest. By 2024, 3 million was outstanding plus 240k in accrued interest. The present value of future cash flows was 2.58 million, resulting in a 660k impairment loss. Journal entries were made for the loan, interest payments through 2024, and the impairment loss. The amortization schedule shows payments through 2027 with interest and principal allocations.

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    A bank granted a 5 million loan over 5 years at 8% interest. By 2024, 3 million was outstanding plus 240k in accrued interest. The present value of future cash flows was 2.58 million, resulting in a 660k impairment loss. Journal entries were made for the loan, interest payments through 2024, and the impairment loss. The amortization schedule shows payments through 2027 with interest and principal allocations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    26 views3 pages

    ACCOUNTS RECEIVABLES 7-8 - Sheet1-2

    Uploaded by

    Astrid Aboitiz
    A bank granted a 5 million loan over 5 years at 8% interest. By 2024, 3 million was outstanding plus 240k in accrued interest. The present value of future cash flows was 2.58 million, resulting in a 660k impairment loss. Journal entries were made for the loan, interest payments through 2024, and the impairment loss. The amortization schedule shows payments through 2027 with interest and principal allocations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Amount of Loan Granted 5,000,000

    Grant Date January 1, 2022


    Period of Loan 5 years
    Interest 8%
    Installments 1,000,000

    December 31,2024
    Principal Payment Outstanding 3,000,000
    Add: Interest Accrued on Outstanding Loan Balance 240,000
    Carrying Amount of Loan Receivable - December 31, 2024 3,240,000

    Present Value of Loan on December 31,2024

    Date Amount Outstanding PVF Present Value


    January 1, 2025 1,000,000 0.93 930,000
    January 1, 2026 1,000,000 0.86 860,000
    January 1, 2027 1,000,000 0.79 790,000

    Present Value of Future Cash Inflows 2,580,000

    Carrying Amount of Loan on December 31,2024 3,240,000


    Present Value of Cash Flows on December 31, 2024 2,580,000
    Impairment Loss on Loan Receivable on December 31,2024 660,000

    Carrying Amount Before Impairment Loss 3,240,000


    Less: Impairment Loss on Loan Receivable 660,000
    Carrying Amount of Loan on December 31,2024 2,580,000

    AMORTIZATION SCHEDULE OF LOAN RECEIVABLE:

    KALIBO BANK LOAN RECEIVABLE SCHEDULE:


    Date Payments Interest @ 8% Principal Loan Carrying Amount
    December 31,2024 - - - 2,580,000
    January 1,2025 1,000,000 206,400 793,600 1,786,400
    January 1,2026 1,000,000 142,912 857,088 929,312
    January 1,2027 1,000,000 70,688 929,312 -

    Interest Calculation:
    January 1, 2025 2,580,000 x 8% 206,400
    January 1, 2026 1,786,400 x 8% 142,912
    January 1, 2027 1,000,000 - 929,312 70,688
    JOURNAL ENTRIES:

    DATE ACCOUNT TITLE DEBIT CREDIT


    2022
    January 1 Loan Receivable 5,000,000
    Cash 5,000,000

    2023
    January 1 Cash 1,000,000
    Loan Receivable 1,000,000

    Cash 80,000
    Interest Income 80,000

    2024
    January 1 Cash 1,000,000
    Loan Receivable 1,000,000

    Cash 80,000
    Interest Income 80,000

    December 31 Impairment Loss 660,000


    Accrued Interest receivable 240,000
    Allowance for Loan Impairment 420,000

    2025
    January 1 Cash 1,000,000
    Loan Receivable 1,000,000

    Allowance for Loan Impairment 206,400


    Interest Income 206,400

    2026
    January 1 Cash 1,000,000
    Loan Receivable 1,000,000

    Allowance for Loan Impairment 142,912


    Interest Income 142,912

    2027
    January 1 Cash 1,000,000
    Loan Receivable 1,000,000
    Allowance for Loan Impairment 70,688
    Interest Income 70,688

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