Loans and Receivables Sample Problems Part 2 1. Fatima Company Company obtained obtained a one-year loan of P5,000,000 from from a bank on April 1, 2005. The loan was diso!nte diso!nted d at 12". The ompany ompany si#ned a note and pled#ed its ao!nts ao!nts reei$a reei$able ble of P5,000,000 as ollateral ollateral for the loan. %n relation to the loan, Fatima Fatima sho!ld report note payable on &eember '1, 2005 at a. P(,)50,000 . P5,(50,000 b b. P(,(00,000 d. P(,550,000 2. *n &eember &eember 1, 2005 +oida Company Company assi#n assi#ned ed on a nonnoti nonnotiation ation basis basis ao!nts ao!nts reei$ab reei$able le of P5,000,000 to a bank in onsideration for a loan of 0" of the reei$ables less a 5" ser$ie fee on the ao!nts assi#ned. assi#ned. +oida si#ned si#ned a note note for the bank loan. *n &eember &eember '1, 2005, +oida olleted olleted assi#ned ao!nts of P',000,000 P',000,000 less diso!nt of P200,000. +oida remitted remitted the olletions to the bank in partial partial payment for the loan. loan. The bank applied rst rst the olletion to the interest interest and the balane to the prinipal. prinipal. The a#reed a#reed interest is 1" per per month on the loan balane. %n its &eember '1, 2005 balane sheet, +oida sho!ld report report note payable as a !rrent !rrent liability at a. P1,(5,000 . P1,5(5,000 b. P1,00,000 d. P2,250,000 '. *n /eptemb /eptember er '0, 2005, en en Compa Company ny diso!n diso!nted ted at the bank bank a !stom !stomer ers s P5, P5,000 000,00 ,000 0 month 10" note note reei$able reei$able dated 3!ne '0, 2005. The bank diso!nted the the note at 12". The proeeds from this diso!nted note amo!nted to a. P5 P 5,02,500 . P(,)(2,000 b. P5 P5,250,000 d. P5,10,000 (. *n April April 1, an enti entity ty assi assi#n #ned ed P00 P00,0 ,000 00 of ao ao!n !nts ts reei eei$a $abl ble e to a bank bank !nde !nderr a nonnonnotiation basis. The bank ad$anes )0" less a ser$ie har#e of P5,000. The entity si#ned a promissory note that pro$ides for interest at 1" per month on the !npaid amo!nt. *n April 5, !stomer whose ao!nt was assi#ned ret!rned #oods p!rhased amo!ntin# to P20,000. *n April 10, a total of P'00,000 of the ao!nts assi#ned were olleted net of 2" diso!nt. *n April '0, the entity remitted the total olletions pl!s one month interest. 4ow m!h is the e!ity in assi#ned ao!nts6 11(,000 5. An entity fator fatored ed ao!nts ao!nts reei$ab reei$able le of P500,000 with with redit redit terms of 2710, n7'0 immediat immediately ely after shipment of #oods to the !stomer. The fator har#es a 5" ommission based on the #ross amo!nt of the reei$ables fatored. fatored. %n addition, the fator withholds 20" of the amo!nt of the reei$ables fatored to o$er sales ret!rns and allowanes. 4ow m!h is the ash reei$ed from fatorin# and the loss from fatorin#6 '5,000 8 0
. A P1, P1,000 000,00 ,000 0 1)0-da 1)0-day y 12" note dated dated 3!ly 3!ly 1 was reei reei$ed $ed from from a !stom !stomer er and dis diso! o!nte nted d witho!t reo!rse on A!#!st '0 at 15" diso!nt rate. 4ow m!h is the #ain or loss on note diso!ntin#6 1',000 loss
. %nternational %nternational bank loaned loaned P5,000,000 P5,000,000 to 9ankard 9ankard Company Company on 3an!ary 3an!ary 1, 200. 200. The terms terms of the loan re!ire prinipal payment of P1,000,000 eah year for 5 years pl!s interest at 10". The rst prinipal payment is d!e on &eember '1, 200. 9ankard was able to make the re!ired payments on 200 and 200) b!t be#an e:perienin# nanial di;!lty d!rin# 200 a!sin# it to defa!lt in payin# the re!ired amo!nt on &eember '1, 200. *n that date, %nternational 9ank asertained the olletion the remainin# remainin# prinipal as follows< &eember '1, 2010 500,000 &eember '1, 2011 1,000,000 &eember '1, 2012 1,500,000 The olletion of the interest interest is !nlikely. 4ow m!h is the impairment impairment loss on &eember '1, 200 and the interest inome on &eember '1, 20106 )2,100 8 21(,)
). =!mmy =!mmy Pekyew Pekyew loaned loaned P,000, P,000,000 000 to Team Team 9readl 9readley ey e$idened e$idened by a year year 12" loan dated dated 3an!ary 1, 2010. The loan re!ires re!ires ann!al prinipal payment of 1,000,000 pl!s interest startin# &aember '1, 2010. Team Team 9readley was able able to make payments for 2010 and 2011 b!t be#an
ha$in# nanial problems in 3an!ary 2012 d!e to a re loss in its wareho!se. =!mmy Pekyew estimated that it an ollet the remainin# prinipal as follows< 2012201'201(2015-
)00,000 1,200,000 1,500,000 500,000
=!mmy Pekyew wai$ed the interest on the loan. 4ow m!h is the impairment loss on this loan6 4ow m!h is the diso!nt on +oans eei$able as of &eember '1, 201'6
