NAME: KHRYZELL GUILL V.

LAGURIN BSA1-MA11

PROBLEM 7-1 (IFRS)

REQUIRED: Prepare journal entries for 2020, 2021, and 2022.

DATE INTEREST INTEREST INCOME AMORTIZATION CARRYING

RECEIVED (10%) (12%) AMOUNT
01/01/2020 3,807,900
12/31/2020 400,000 456,948 56,948 3,864,848
12/31/2021 400,000 463,782 63,782 3,928,630
12/31/2022 400,000 471,370* 71,370 4,000,000
*12% x 3,928,630 = 471,435 (471,435 – 471,370 = 65) A DIFFERENCE OF P65 DUE TO ROUNDING.

JAN. 1, 2020

LOAN RECEIVABLE 4,000,000

CASH 4,000,000

CASH 342,100
UNEARNED INTEREST INCOME 342,100

UNEARNED INTEREST INCOME 150,000

CASH 150,000

DEC. 31, 2020

CASH 400,000
UNEARNED INTEREST INCOME 400,000

UNEARNED INTEREST INCOME 56,948

INTEREST INCOME 56,948

DEC. 31, 2021

CASH 400,000
INTEREST INCOME 400,000

UNEARNED INTEREST INCOME 63,782

INTEREST INCOME 63,782

DEC. 31, 2022

CASH 400,000
INTEREST INCOME 400,000

UNEARNED INTEREST INCOME 71,370

INTEREST INCOME 71,370

CASH 4,000,000
LOAN RECEIVABLE 4,000,000
NAME: KHRYZELL GUILL V. LAGURIN BSA1-MA11

PROBLEM 7-2 (IFRS)

REQUIRED:
1. Compute the carrying amount of the loan receivable on January 1, 2020
ORIGINATION FEE RECEIVED 350,000
DIRECT ORIGINATION COST (61,500)
UNEARNED INTEREST INCOME 288,500
NOTE RECEIVABLE 4,000,000
UNEARNED INTEREST INCOME (288,500)
CARRYING AMOUNT – 1/1/2020 3,711,500

2. Prepare a table of amortization for the loan receivable

DATE INTEREST INTEREST AMORTIZATION CARRYING
RECEIVED (10%) INCOME (12%) AMOUNT
01/01/2020 3,711,500
12/31/2020 400,000 445,380 45,380 3,756,880
12/31/2021 400,000 450,826 50,826 3,807,706
12/31/2022 400,000 456,925 56,925 3,864,631
12/31/2023 400,000 463,756 63,756 3,928,387
12/31/2024 400,000 471,613 71,613 4,000,000

3. Prepare the journal entries for 2020 and 2021.

JAN. 1, 2020
LOAN RECEIVABLE 4,000,000
CASH 4,000,000

CASH 350,000
UNEARNED INTEREST INCOME 350,000

UNEARNED INTEREST INCOME 61,500

CASH 61,500

DEC. 31,2020
CASH 400,000
INTEREST INCOME 400,000

UNEARNED INTEREST INCOME 45,380

INTEREST INCOME 45,380

DEC. 31, 2021

CASH 400,000
INTEREST INCOME 400,000

UNEARNED INTEREST INCOME 50,826

INTEREST INCOME 50,826