Asked Jul 24, 2012, 04:05 AM
A company has applied for a bank loan on february 04,2009. it was approved on march 03 of the same year, but the proceeds of such loan were credited to the company's bank account only on may 01. the loan was payable in four equal annual installments of 500,000 starting june 01,2010. it also incurs interest at half of 1% every month(based on the total principal) starting may 01,2009. the interest is payable at the same time as tha annual installments. the company's operations are based on a calendar year.
1.if the financial statements were to be prepared for the year 2009, what amount would appear as interest expense in the entity's statements of income and expenses.
2.using the information in no.1 what would appear as noncurrent portion of the loan payable account for a statement of financial position prepared as of december 31,2009?
3.a company had total assets of 1,500,000 as of january 01,2010. for hte year 2010,its liabilities have increase by 400,000, its owner invested an additional 100,000 and withdrew 50,000 and it had a net loss at 230,000. as of december 31,2010, it must have had total assets equal to?
4.a company's statement of changes in owner's equity showed a beginning balance of 250,000, an additional investments of 30,000, a withdrawal of 40,000, and an ending balance of 225,000. the company's results of operations for the year must have been ?