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Problem 7-2
Problem 7-2
Problem 7-2
2.)
Interest Interest Amortization Carrying
received Income amount
1/1/20 3,711,500
12/31/20 400,000 445,380 45,380 3,756,880
12/31/21 400,000 450,826 50,826 3,807,706
12/31/22 400,000 456,925 56,925 3,864,631
12/31/23 400,000 463,756 63,756 3,928,387
12/31/24 400,000 471,613 71,613 4,000,000
1/1/2020
Loans Receivable 4,000,000
Cash 4,000,000
Cash 350,000
Unearned Interest Income 350,000
Unearned Interest Income 61,500
Cash 61,500
12/31/20
Cash 400,000
Interest Income 400,000
Unearned Interest Income 45,380
Interest Income 45,380
12/31/21
Cash 400,000
Interest Income 400,000
Unearned Interest Income 50,826
Interest Income 50,826