On november 1 2024 cedar corp lent needofcash inc 100000 on...

Name: on november 1 2024 cedar corp lent needofcash inc 100000 on october 31 2025 needofcash inc will repay cedar corp 100000 plus 6 interest no payments were received by cedar corp from needofcas 24209
Uploaded: 2023-12-07T02:57:33-08:00
Duration: 2 min 41 s
Channel: Akash M
Description: on november 1 2024 cedar corp lent needofcash inc 100000 on october 31 2025 needofcash inc will repay cedar corp 100000 plus 6 interest no payments were received by cedar corp from needofcas 24209

On November 1, 2024, Cedar Corp. lent NeedOfCash Inc. $100,000. On October 31, 2025, NeedOfCash Inc. will repay Cedar Corp. $100,000 plus 6% interest. No payments were received by Cedar Corp. from NeedOfCash Inc in 2024. What will be reported by Cedar Corp. for interest receivable on the December 31, 2024 balance sheet?

On January 1, 2020, the lending company made a $200,000 8% loan. The interest is receivable at the end of each year, with the principal amount to be received at the end of 5 years. As of December 31, 2020, the interest for the current year has not been received nor recorded because the borrower is experiencing financial difficulties. The lending company negotiated a restructuring of the loan. The payment of all of the interest based on the original loan will be delayed until the end of the 5-year loan term. In addition, the amount of principal repayment will be dropped from $200,000 to $100,000. The prevailing interest rate for a similar type of loan as of December 31, 2020, is 10%. The loan impairment loss to be recognized in the 2020 profit or loss is $77,492.

Akash M.

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