Loans Receivable &
Impairment
Acc 106 BSA2
Loans Receivable
Cash
To record initial cost of L/R
1,000,000
Cash
20,000
Unearned Interest Income
To record payment of origination fees
1,000,000
20,000
Unearned Interest Income
10,000
Cash
10,000
To record payment of actual origination cost
Illustration
Problem Exercise 1
Actual Incurrence Approach
1.
2.
Compute for the Impairment Loss
Journal entries for 2020 to 2026
Problem Exercise 1 - Solution
Problem Exercise 2 -
1.
2.
3.
Compute for the Impairment Loss in 2020 to 2022
Compute for the Carrying Amount of the Loan in 2020 to 2022
Journal entries for 2020 to 2022
Problem Exercise 2 - Solution 1st Stage
Problem Exercise 2 - Solution 2nd Stage
Problem Exercise 2 - Solution 3rd Stage