Question: Correct answer with complete solutions. Groudon Bank loaned P12,000,000 to Kyogre Company on January 1, 2020, the terms of the loan require principal payments of

Correct answer with complete solutions.

Correct answer with complete solutions. Groudon Bank loaned P12,000,000 to Kyogre Company

Groudon Bank loaned P12,000,000 to Kyogre Company on January 1, 2020, the terms of the loan require principal payments of P2.000.000 each year for 6 years plus interest at 6%. The first principal and Interest payment is due on December 31, 2020. Kyogre made the required payments on December 31, 2020, and December 31, 2021. However, Kyogre began to experience financial difficulties during 2022 which requires the bank to reassess the collectibility of the loan On December 31, 2022, the bank determined that the remaining principal payments will be collected but the collection of the interest is unlikely. The bank did not accrue the interest for 2022. Expected Principal Payments December 31, 2024 4.000.000 December 31, 2025 2.500.000 December 31, 2026 1.500,000 (Round att present value factors up to four decimal points only round of up to two decimals the final value) Questions 1. How muth is the impairment lost to be recorded on December 31, 20221 2. How much is the carrying-amount on the loan as of December 31, 20247 -3. How much is the interest income for the year 2024! 4. How much is the balance of the allowance for loan impairment at of December 31, 2025? Groudon Bank loaned P12,000,000 to Kyogre Company on January 1, 2020, the terms of the loan require principal payments of P2.000.000 each year for 6 years plus interest at 6%. The first principal and Interest payment is due on December 31, 2020. Kyogre made the required payments on December 31, 2020, and December 31, 2021. However, Kyogre began to experience financial difficulties during 2022 which requires the bank to reassess the collectibility of the loan On December 31, 2022, the bank determined that the remaining principal payments will be collected but the collection of the interest is unlikely. The bank did not accrue the interest for 2022. Expected Principal Payments December 31, 2024 4.000.000 December 31, 2025 2.500.000 December 31, 2026 1.500,000 (Round att present value factors up to four decimal points only round of up to two decimals the final value) Questions 1. How muth is the impairment lost to be recorded on December 31, 20221 2. How much is the carrying-amount on the loan as of December 31, 20247 -3. How much is the interest income for the year 2024! 4. How much is the balance of the allowance for loan impairment at of December 31, 2025

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

You are an Examiner for the Refund Integrity Program in the GST/HST Audit Division of the Canada Revenue Agency (CRA). Using sophisticated analytical tools, you are able to identify GST/HST returns...

Answer with complete solutions. Coconut Bank loaned P 5,000,000 to Chocnut Company on January 1, 2023. The terms of the loan require principal payments of P1,000,000 each year for 5 years plus...

Please answer this i have limited time only SITUATION T On July I, 2020. Pasuquin Co. sold goods in exchange for P2.000.000, 8~month. 10% note receivable. At the time of the sale, the note's market...

2:31 The Ball Watch Company... PAGES Smartwatches and Smart Wearables 3-5 The Ball Watch Company (parent company) 6 The Ball Watch Company of Canada 7-8 Key Issues and Findings 8-11 12 Required...

include the PnL and Balance sheet Comment on the financial performance of Sandy Manufacturing Pty Ltd, did the financial performance improve or deteriorate during the past financial year. Use...

Hi Katrina, I have another accounting problem I need your help with. It's similar to the one you did on 4/4/2016. The due date for this one will be 4/10/2016, Will you be able to help? See below...

Can anyone help me with this or already have the solution this whole Finance Workbook for Madura Personal Finance, Third Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK INDEX Chapter...

I need chapters 18, 19, 20, and 21 for the workbook for Personal Finance by Madura!! Please help!!! Personal Finance, Fifth Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK INDEX...

I need Chapter 2 & 3 finished. Chapter 4 & 5, Chapter 6 & 7, & Chapter 8. Some of this is completed, but it isn't 100% finished. Let me know if you can get to it. Personal Finance, Fifth Edition by...

20 21 22 23 24 11 14 15 7 8 9 10 13 4 6 2 3 5 ABC Co. manufactures widgets and has the following operating information for the past year: A A 12 B B Product Line Product Line Budgeted Unit Sales...

Define purchase lead time. What factors affect lead time?

What role does the secondary market play in capital formation? Question 1 1 options: Provides liquidity to investors None of the above Helps in price discovery Determines the initial price of...

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

6. How did American Waters data warehouse improve operations and management decision making? American Water, founded in 1886, is the largest public water utility in the United States. Headquartered...

4. How did implementing a data warehouse help American Water move toward a more centralized organization? American Water, founded in 1886, is the largest public water utility in the United States....

6-8 Iko Instruments Group, a global supplier of measurement, analytical, and monitoring instruments and services based in the Netherlands, had a new data warehouse designed to analyze customer...