ABC Limited borrows $ 1 0 0 , 500 from a bank on the following terms: arrangement
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Question:
ABC Limited borrows $500 from a bank on the following terms: arrangement fees of $ are charged by the bank and deducted from the initial proceeds on the loan; interest is payable at for the first three years of the loan and then increases to for the remaining two years of the loan;the full balance of $ is repaid at the end of year
Require
aWhat interest should be recognised in the statement of comprehensive income for each year of the loan?
b If Isabelle Limited repaid the loan after three years for $ what gain or loss would be recognised in the statement of comprehensive income?
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date: