PROBLEM 3: EXERCISES 1 On 1st May 20X1, DEF took a loan of P1,000,000 from a bank at the annual interest rate of 5%. The purpose of this loan was to finance construction started on 1 June 20X1. DEF temporarily invested P800,000 borrowed money during the months of June and July 20X1 at the rate of 2% p.a. construction of a production hall. The a Requirement: What borrowing cost can be capitalized in 20X1? (Assume all interest was paid). (Adapted)
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- tme unIount 0I Ict T ccCIvao. Question 6.2: Bank Mysarah provides a financing facility based on the principles Murabahah to the Purchase orderer to Barakah Construction. to purchase specialized equipment to be used for their business project. The financing amounted to OR 500.000 at a constant rate of return of 10% for a period of 5 years. The annual installment payment is OR 150,000. Required : a) Prepare journal entries for Bank Mysarah only for the first year and final year of the contract. b) Present a statement showing the amount of net receivable and murabahah income for the whole duration of the contract. 6.3A company has the following loans in place throughout the year ended 31 December 20X8. $m 10% bank loan 140 8% bank loan 200 On 1 July 20X8 $50 million was drawn down for construction of a qualifying asset which was completed during 20X9. What amount should be capitalised as borrowing costs at 31 December 20X8 in respect of this asset? A $5.6 million B $2.8 million C $4.4 million D $2.2 millionThe Problem 24-6 (IAA) Zephyr Company is provided a grant by a foreign governme for. the purpose of acquiring land for a building site grant is a zero-interest loan for 5 years evidenced hu promissory note. The loan was granted on January 1, 2020 for P8,000;000, The market rate of interest is 6%. The present value of 1 for fiv periods at 6% is .7473. Required: Prepare journal entries for 2020 and 2021.
- QUESTION 1 : SPECIFIC BORROWINGS On 1 January 20X1 Bakti Bhd borrowed RM1.5m to finance the production of its plant, which was expected to take a year to build. Work started during 20X1. For the first quarter of 20X1, only RM700,000 was required for the construction of the plant. The remaining RM800,000 was only required from 1 April 20X1 onwards. Hence, from 1 Iyear Jan to 31 March 20X1, Bakti invested the remaining RM800,000 temporarily to earn some interest income. The loan rate was 7% and Bakti Bhd can invest surplus funds at 3%. Required Compute the borrowing costs which may be capitalised and consequently cost of the plant as at 31 December 20X1. MERS 123QUESTION 2: GENERAL BORROWINGS Acruni Co had the following loans in place at the beginning and end of 20X6. General boro wings 31 December 1 January 20X6 20X6 RM'm RM'm 120 10% Bank loan repayable 20X8 9.5% Bank loan repayable 20X9 8.9% debenture repayable 20X7 120 80 80 150 The 8.9% debenture was issued to fund the construction of a qualifying asset (a piece of mining equipment), construction of which began on 1 July 20X6. On 1 January 20X6, Acruni Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrowings. Expenditure drawn down for the construction was: RM30m on 1 January 20X6, RM20m on 1 October 20X6. Required Calculate the borrowing costs that can be capitalised for the hydro-electric plant machine.Question 1: Choose the correct answer An amount of money was deposited in the savings fund with an annual interest of -1 (8%), calculated every six months. What is the actual interest? (The actual leader is (11.16%) 0 is O(9.16%). The effective interest (The effective interest is (10.16%) 0 The actual leader is (8.16%) 0 A finance company loaned an engineering company -2 ($100,000) to rehabilitate poorly constructed buildings. The term of the loan was 3 years with a simple interest (10%). How much will the company pay at the end of the third year *? The amount is (120,000) dollars The amount is (130,000) dollars. 0 The amount is (150,000) dollars, 0 (The amount is (140,000) dollars. 0
- IA - Receivable Financing 10. Problem Solving. A company pledged its entire accounts receivable amounting to P2,500,000 to a financing institution to a loan approved for P2,000,000. The term of the loan requires the company to pay the principal when it becomes mature 4 years from now and also to pay 12% annual interest every end of the year. Should the company has made no collateral for the loan, interest rate could have been 18%. Assuming the transaction occurred on January 1, 20A, compute the total amount of expense that should be deducted from the current year’s income of the company. Round off final answer to the nearest peso.Lesson 35 Supplementary Exercises 27. Study the amortization schedule and fill in the blanks. 28. A loan amounting to P100,000 is to be paid annually for 4 years with an interest rate of 10% per annum. The annual amortization is P31,547.08. Regular Рayment R Interest Component of Payment Principal Component of Payment Outstandin Period g Balance A 1 B 10,000 21,547.08 78,452.92 31,547.08 D 54,751.13 3 31,547.08 5,475.11 26,071.97 28,679.16 4 31,547.08 2,867.92 28,679.16 E TOTALS A. How much is the amount of the loan? B. How much is the payment on the first period? C For the second payment, how miuch gnes to pay the inferest? D. For the second payment, how much goes to pay the principal? E. How much is the outstanding balance after the 4" payment? 2.Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%. B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%. C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.
- Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed 2.5 million on January 1 specifically for the project by issuing a 10%, 5-vear, 2.5 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, 3 million note payable and a 10%, 10-year, 1.8 million note payable outstanding all year. Calculate the weighted average interest rate on the non-construction-specific debt for Year 1. RE10-9 Refer to RE10-8. In Year 1, Dexter incurred costs as follows: Calculate Dexters weighted average accumulated expenditures.1. What is the maturity date of a loan taken out on May 16, for 53 days? A. June 30 B. July 1 C. July 8 D. August 9 2. The financial officer of Toys and Noise arranges a loan of $8,500, at 8.5% interest, for 35 months. Find the amount of simple interest. (Round to the nearest cent.) A. $1,445.00 B. $2,107.29 C. $2,528.75 D.$2,914.29Problem #3: A loan of amount $16720.82 is repaid in 15 annual payments beginning 1 year after the loan is made. The first 6 payments are $1000 each, and the final 9 payments are each $2000. Interest is at an effective annual rate of 4.2%. What is the amount of the principal repayment in the 6th payment? Problem #3: 2/2V 329.49 Answer correct to 2 decimals. A