Академический Документы
Профессиональный Документы
Культура Документы
2. (Martin Bank) B
Journal Entry:
Loan Receivable 150,000
Cash 144,000
Unearned Interest Income 6,000
Unearned Interest income 4,000
Cash 4,000
Administrative Expenses 2,000
Cash 2,000
3. A
Solution:
Principal amount 150,000
Origination fee (150K x 4%) (6,000)
Carrying amount 144,000
5. A Bigco, Inc. has not surrendered control over any amount of transferred receivables because it is
obligated to repurchase the receivables.
6. D Since the transfer of the bond is used only as security for the loan, and not as a sale of the bond,
Dayco would not recognize the bond on its books at the time of the transfer. The bond would be
recognized on Dayco's books on the date Rayco defaulted and at its fair value at that time.
7. (Servco) C
Solution:
Year Expected fees Fractions
1 40,000 40/80
2 30,000 30/80
3 10,000 10/80
80,000
9. ( Roth)
C Maturity value = 500,000 + (500,000 x 8%) = 540,000
Discount = 540,000 x 10% x 6/12 = 27,000
10. ( Bain) A
Solution:
NP = MV - D