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 LSB Bank granted an 8%, 3 year P 6,000,000 loan to Global Corporation on January 1, 2020. The interest on the loan is 
payable every December 31`. LSB incurred P 148,122 of direct origination costs but an origination fee of P 300,000 was 
charged against global Corp. The effective rate on the loan as a result of the origination fee and cost is now 9%. 
 The journal entry on January 1, 2020 to record the release of the loan would be 

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Related questions

On January 1, 2016, Denver Company borrowed $25,000 by issuing a 5-year note to Capital Bank. The note had a 10% annual rate of interest. The loan agreement called for five equal payments of $6,595 on December 31 of each year 2016 through 2020. What is the correct journal entry to record the loan payment on December 31, 2016?

a.
Debit Credit
Interest Expense 6,595
Cash 6,595

b.

Debit Credit
Installment Note Payable 6,595
Cash 6,595

c.

Debit Credit
Interest Expense 2,500
Installment Note Payable 4,095
Cash 6,595

d.

Debit Credit
Interest Expense 2,500
Cash 4,095
Installment Note Payable 6,595

Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, “I’ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.” They called several banks and on January 1, 2020, Great Adventures obtained a $450,000, 6%, 10-year installment loan from Summit Bank. Payments of $4,996 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $4,996 includes both interest expense and principal payments (i.e., reduction of the loan amount).


Late that night Tony exclaimed, “$450,000 for our new camp, this has to be the best news ever.” Suzie snuggled close and said, “There’s something else I need to tell you, Tony, I’m expecting!” They decided right then, if it was a boy, they would name him Venture.


Required:

1. Complete the first three rows of an amortization table.


2. Record the note payable on January 1, 2020, and the first two payments on January 31, 2020, and February 28, 2020. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

On Jan. 4, 2017, Game Outlet received a 3-year $240,000, 10% bank loan that pays interest semi-annually on June 30 and December 31 of each year. Following is the journal entry that was made on that day:

1/4/2017 A­ Cash 240,000

L­ Note Payable 240,000

Received sublet rent for 12 months from 1/15/2017 - 1/14/2018

As of the end of February, Game Outlet had incurred (but did not pay) interest expense on its loan. If an adjusting journal entry is needed as of 2/28/2017, write it below (in proper form). If no adjusting entry is needed, write “No Entry Needed.”

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