We ask for a loan to Bank B for 500,000 euros to be paid in 4 years with annual instalments of 150,000 euros each. The amortised cost table is the following. If we do monthly accounting, what would be the entry on 31/10/2019?

Question

We ask for a loan to Bank B for 500,000 euros to be paid in 4 years with annual instalments of  150,000 euros each. The amortised cost table is the following. If we do monthly accounting, what would be the entry on 31/10/2019?

Accepted Answer

1,726.25     Interest Expense  (662)         Current interest on debt  (527) 1,726.25

Answer

2,497.75   Interesest expense (662)        Current interest on debt  (527)  2,497.75

Answer

150,000  Current interest on debt (527)        Banks  (572)  150,000

Answer

I do not know the answer

Answer

We do nothing as we pay the interests annually

Date	Interest	Payment	Principal amortised	Cost Amortised
01/04/2017				500,000
01/04/2018	38,569	150,000	111,431	388,569
01/04/2019	29,973	150,000	120,027	268,542
01/04/2020	20,715	150,000	129,285	139,257
01/04/2021	10,742	150,000	139,258

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We ask for a loan to Bank B for 500,000 euros to be paid in 4 years with annual ...

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