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Friday, August 6, 2010

Valix Finacc vol 1 Problem 5-25

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 5-25


2008
Jan.  1       Loan receivable                                                               3,000,000           
                        Cash                                                                                                3,000,000 

                 Direct origination cost                                                       260,300
                        Cash                                                                                                  260,300

                 Cash                                                                                   100,000
                        Direct origination cost                                                                       100,000

Dec. 31     Cash                                                                                   240,000
                        Interest income                                                                                  240,000

                 Interest income                                                                    50,382
                        Direct origination cost                                                                        50,382

                                   (8%)                          (6%)                    
     Date            Interest received         Interest income         Amortization      Carrying value           
01/01/2008                                                                                                               3,160,300
12/31/2008               240,000                         189,618                    50,382                   3,109,918
12/31/2009               240,000                         186,595                    53,405                   3,056,513
12/31/2010               240,000                         183,487                    56,513                   3,000,000

2009
Dec. 31     Cash                                                                                   240,000
                        Interest income                                                                                  240,000

                 Interest income                                                                    53,405
                        Direct origination cost                                                                        53,405

2010
Dec. 31     Cash                                                                                   240,000
                        Interest income                                                                                  240,000


                                                                                                              

2010
Dec. 31     Interest income                                                                  56,513
                        Direct origination cost                                                                        56,513

                 Cash                                                                                 3,000,000
                        Loan receivable                                                                             3,000,000

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