Happy Mortgage Corp. is a mortgage lender. The following information relates to Happy Mortgage's portfolio of loans held for...
Happy Mortgage Corp. is a mortgage lender. The following information relates to Happy Mortgage's portfolio of loans held for investment at December 31, 2021: Principal amount of loans at year end (excluding negative amortization) $50 million Interest earned for year $5 million Negative amortization accrued during the year $2.5 million Allowance for loan lossen at end of year 1.5% of (loan principal plus accumulated negative amortization) Accumulated negative amortization at beginning of 2021 (none of this was $4.5 milion paid during the year) 1. What is the gross amount of loans as an investment recorded on the balance sheet as at December 31, 20217 (1 mark) 2. Calculate the loan losses for the year. (2 marks) 3. What is the amount of loans heid as an investment net of losses on the balance sheet as at December 31, 20217 (2 marks) For the toolbar, press ALT F10 PC) or ALT-FNF10 (Mac BIVS Paragraph Arial 10pt ... 52EE x X, 8 Ox T7 田出用回田旺国 !!!
Amounts are in Negative amortization of a loan means the View the full answer
An amortization schedule (sometimes called an amortization table) is a table detailing each periodic payment on an amortizing loan. Each calculation done by the calculator will also come with an annual and monthly amortization schedule above. Each repayment for an amortized loan will contain both an interest payment and payment towards the principal balance, which varies for each pay period. An amortization schedule helps indicate the specific amount that will be paid towards each, along with the interest and principal paid to date, and the remaining principal balance after each pay period