On December 1, 2013, Bliss Co. gave Logan Co. a P200,000, 11% loan. Bliss paid proceeds of P194,000 after the deduction of a P6,000 nonrefundable loan origination fee. Principal and interest are due in sixty monthly installments, beginning January 1, 2014. Assume that the effective interest rate after the consideration of charged origination fees is 12.40%. What amount of income from this loan should Bliss report in its 2013 income statement?

Answer rating: 100% (QA)

Answer P2005 Explanation Journal entry for loan given Loan AC 200000 To Ca... View the full answer