Accounting On July 1, 20x1, Morning Co. extends a 3-year, 12%, P2,400,000 loan to a borrower. The principal is due at maturity but interAt initial recognition, Morning Co. determines that the loan is not a purchased or originated credit-impaired financial asset. On December 31, 20x1, Morning Co. determines that the increase in credit risk since initial recognition is significant but the loan is not credit-impaired. 

Requirements: 

Provide the journal entries on the following dates: July 1, 20x1, December 31, 20x1, and December 31, 20x2. (Provide also the entry for the accrual of interest whenever appropriate).

Answer rating: 100% (QA)

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