On May 1, 2018, D borrowed P100,000.00 from C. The loan is payable on or before April 30, 2019 and bears interest at 12% per annum. Which of the following statements is incorrect?1 pointD may pay before April 30, 2019.C may demand payment on April 30, 2019.D may pay on April 30, 2019.C may demand payment before April 30, 2019.

D owed C the following debts: P12,000.00 due on May 1; P12,000.00 due on May 5; P12,000.00 due on May 15 (secured by a pledge of D’s ring); and P12,000.00 due on May 25. On May 22, D wanted to tender payment to C but he had only P12,000.00. As of such date, none of the debts had been paid. In this case, D may apply the payment to:1 pointTo any of the debts due on May 1, May 5 and May 15, since they have all become due as of May 22.Any of the four debts since each one is of the same amount of the payment.All debts proportionately at P3,000.00.Only to the debt due on May 15 since it is the most onerous debt to D.

A company borrows money as needed on the first day of the month and repays principal and interest on the last day of the budget period, if cash is available.  For the second quarter of the year, they borrowed $10,000 in April, $8,000 in May and $5,000 in June.  The interest rate is 1% per month.  Assuming enough money is available on June 30th to repay the debt, the total amount of interest due is Blank______.Multiple choice question.$560$230$690

You just borrowed $700,000 using a 30 year home loan that's interest-only for the first 5 years, and principal and interest (P&I) for the remaining 25 years.The interest rate is 6.48% pa compounding monthly which is not expected to change.Which of the following statements is NOT correct?Question 5Select one:a.The effective monthly rate is 0.0054 per month, given as a decimal. If the interest rate rises, the IO and P&I monthly payments will rise.b.If the IO term was one year shorter so the P&I term was one year longer, then the monthly payments over the P&I term would be higher.c.The IO loan's perpetuity factor is 185.185185, while the P&I loan's annuity factor is 148.377206.d.The IO loan payments will be $3,780 per month, rounded to the nearest cent.e.The P&I loan payments will be $4,717.71 per month, rounded to the nearest cent.

At maturity date, a borrower repays in full the principal of a $2,000 loan and pays $150 interest. Which of the following statements is NOT correct?A.Their assets decrease by $2,150.B.Their bank deposits decrease by $2,150.C.Their debt decreases by $2,150.D.Their equity decreases by $150.E.Their balance sheet shrinks.

On April 1, 2022, Seamus Company purchased equipment by issuing a four-year, non-interest-bearing note with face amount of P1,600,000.The note is payable in annual installments of P400,000. The first installment is due on March 31, 2023. There was no equivalent cash pricefor the equipment and the note had no ready market. The prevailing rate of interest for the note of the same type is 9%.a. At what amount should the note be initially measured?b. Prepare the amortization table of the loan.c. Prepare the relevant journal entries for the years 2022 to 2026.d. What amount should be reported as current liability on December 31, 2023?e. What amount should be reported as non-current liability on December 31, 2023?