Company XXX SA agrees on January 1st 2024 with the following long-term loan with a financial institution:
- Nominal amount: 70,000 €
- Nominal interest rate: 5% annual
- Loan opening fees: 1,400 €
- Period: 4 years
- Loan repayment: 4 constant instalments of 19,800€ each at the end of each year

Assuming monthly accounting, one of the entries the company will need to record on January 31, 2024, is:

Question

Company XXX SA agrees on January 1st 2024 with the following long-term loan with a financial institution: 
 - Nominal amount: 70,000 € 
 - Nominal interest rate: 5% annual 
 - Loan opening fees: 1,400 € 
 - Period: 4 years 
 - Loan repayment: 4 constant instalments of 19,800€ each at the end of each year 
  
   
   
   
   
   
   
 Assuming monthly accounting, one of the entries the company will need to record on January 31, 2024, is:

Accepted Answer

D. 343.3 (662) Interest expense; Cr. (527) Current interest on debt with financial institutions 343.3

Answer

D. 264.8 (662) Interest expense; Cr. (527) Current interest on debt with financial institutions 264.8

Answer

D. 343.3 (527) Current interest on debt with financial institutions;  Cr. (662) Interest expense 343.3

Answer

D. 4,120 (662) Interest expense; Cr. (572) Banks 4,120

Answer

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Date (day/month/year)	Interests	Payments	Principal amortised	Amortised Cost
01/01/2024				68,600
31/12/2024	4,120	19,800	15,680	52,920
31/12/2025	3,178	19,800	16,622	36,298
31/12/2026	2,180	19,800	17,620	18,678
31/12/2027	1,122	19,800	18,678

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Company XXX SA agrees on January 1st 2024 with the following long-term loan with...

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