SEA BANK

DEC. 31, 2023 (500,000 X 0.90) ₱ 450,000

DEC. 31, 2024 (1,000,000 X 0.81) ₱ 810,000
DEC. 31, 2025 (2,000,000 X 0.73) ₱ 1,460,000
DEC. 31, 2026 (4,000,000 X 0.66) ₱ 2,640,000
TOTAL PRESENT VALUE OF THE LOAN ₱ 5,360,000

LOAN RECEIVABLE ₱ 7,500,000

ACCRUED INTEREST RECEIVABLE (7,500,000 X 11%) ₱ 825,000
CARRYING AMOUNT ₱ 8,325,000
PRESENT VALUE OF LOAN ₱ 5,360,000
IMPAIRMENT LOSS FOR 2022 ₱ 2,965,000

JOURNAL ENTRY ON DEC. 31, 2022

IMPAIRMENT LOSS ₱ 2,965,000

ACCRUED INTEREST RECEIVABLE
ALLOWANCE FOR LOAN IMPAIRMENT

THE IMPAIRMENT LOSS ON LOAN RECEIVABLE IS MEASURED AS THE DIFFERENCE BETWEEN THE
CARRYING AMOUNT OF LOAN RECEIVABLE AND THE PRESENT VALUE OF THE LOAN USING
THE ORIGINAL EFFECTIVE RATE

INTEREST INCOME FOR 2023 (5,360,000 X 11%) ₱ 589,600

CASH ₱ 500,000
LOAN RECEIVABLE ₱ 500,000

ALLOWANCE FOR LOAN IMPAIRMENT ₱ 589,600

INTEREST INCOME ₱ 589,600

LOAN RECEIVABLE (7,500,000 - 500,000) ₱ 7,000,000

ALLOWANCE FOR LOAN IMPAIRMENT (2,140,000 - 589,600) ₱ 1,550,400
CARRYING AMOUNT DEC. 31, 2023 ₱ 5,449,600

SONIC BANK

PV OF PRINCIPAL (P500,000 X .735) ₱ 367,500

PV OF INTEREST (P80,000 X 5 X .735) ₱ 294,000
TOTAL PV OF LOAN ₱ 661,500

LOAN RECEIVABLE ₱ 1,000,000

PV LOAN ₱ 661,500
IMPAIRMENT LOSS ₱ 338,500 1.
 INTEREST INCOME FOR 2022 ₱ 52,920

ORIO BANK
PV OF PRINCIPAL (P5,000,000 X .75) ₱ 3,750,000
PV OF INTEREST (P200,000 X 2.49) ₱ 498,000
TOTAL PV OF LOAN 2021 ₱ 4,248,000
CARRYING AMOUNT ₱ 5,000,000
IMPAIRMENT LOSS -₱ 752,000 1.

INTEREST INCOME FOR 2022 ₱ 424,800 2.

LOAN RECEIVABLE - 12/31/2022 ₱ 5,000,000

ALLOW. FOR LOAN IMP. ₱ 527,200
CARRYING AMOUNT ₱ 4,472,800 3.

INTEREST INCOME FOR 2023 ₱ 447,280

INTEREST RECEIVED ₱ 200,000
AMORT. OF ALLOW. FOR LOAN IMP. ₱ 247,280

DANE BANK
CASH PROCEEDS ₱ 2,100
INTEREST RATE SWAP ₱ 140
CALL OPTION ₱ 80
RECOURSE OBLIGATION -₱ 120
NET PROCEEDS ₱ 2,200
CARRYING AMOUNT ₱ 2,000
GAIN ON SALE ₱ 200 1.

CASH ₱ 2,100
INT. RATE SWAP RECEIVABLE ₱ 140
CALL OPTION ₱ 80 2.
LOAN RECEIVABLE ₱ 2,000
RECOURSE OBLIGATION ₱ 120
GAIN ON SALE ₱ 200
 1.

₱ 825,000
₱ 2,140,000

ENCE BETWEEN THE

E LOAN USING

2.

3.
IMPAIRMENT LOSS ₱ 752,000
ALLOW. FOR LOAN IMP. ₱ 752,000

CASH ₱ 200,000
ALLOW. FOR LOAN IMP. ₱ 224,800
INTEREST INCOME ₱ 424,800

CASH ₱ 200,000
ALLOW. FOR LOAN IMP. ₱ 247,280
INTEREST INCOME ₱ 447,280