Allen Mursau
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12 selected videos
Loan Amortization (Regular Payments Received) Accounting Calculations & Journal Entries
How to amortize and record a loan (note receivable) with equal payments (annuity type loan payments), calculate the interest revenue on the loan for the period (duration) of the loan, then amortize the interest revenue and recognize the revenue on the income statement, following steps (accounting detailed), (1) discount the loan (FV) back to the issue date using the interest rate on the loan (using Excel PV function given interest rate & payments), (interest revenue = FV lump sum payment - PV...
Related topics : loan payment calculator excel / interest rates loan / calculating loan interest / loan calculator with amortization schedule
Loan Amortization (Single Ballon Payment) Accounting Calculations & Journal Entries
How to amortize and record a loan (note receivable) with a single payment (ballon payment) when it comes due (accounting on balance sheet and income statement detailed (T Accounts), calculate the interest revenue on the loan for the period (duration) of the loan, then amortize the interest revenue and recognize the revenue on the income statement, following steps detailed, (1) discount the loan (FV) back to the issue date using the interest rate on the loan (using Excel PV function), (interest...
Related topics : interest loan calculator / loan calculator with amortization schedule / interest rates loan / calculating loan payments in excel
Internal Rate Of Return (Using Excel IRR Function) Calculate Loan Interest Rate
How to calculate the interest rate on a loan, (notes payable or notes receivable) using the internal rate of return for a discounted cash flow (using Excel IRR function), we are given the future amount of cash payable or receivable (single sum or payment amounts) and the cash flow has to be discounted back to its present value, sometimes we are given its present value or interest rate but not both, lets look at different cases and how we would use the internal rate of return (IRR) calculation,...
Related topics : interest rates loan / loan calculator rate / calculating loan interest / amortization loan calculator excel
Loan Amortization For Principal And Interest Described Thru Amortization Schedule
Shown are two different amortization schedules for a loan and details the amortization method for both amortization schedules, based on discounting the loan payments back to their present value at the date of the loan (shown as a cash flow diagram), amortization schedule (1) (begiining loan balance + interest payment i payment = ending balance), amortization schedule (2) (payment - interest = principal and subtracts from previous loan balance), both amortization schedules show calculations...
Related topics : loan calculator with amortization schedule
Consolidate Intercompany Debt As Note Payable For Business Consolidation
Consolidation process for intercompany debt for Consolidated Financial Statement, basic example as a Note Receivable and Note Payable, where parent company loans money to the subsidiary company, consolidation process requires the loan (note) debt and related interest expense and revenue has to be eliminated on the consolidated financial statement, example includes eliminations and adjustments on the consolidation worksheet including Consolidated Income Statement and income distribution...
Related topics : business consolidation debt loan
Discounted Cash Flows (Loan Payment Calculated Using DCF Factor For Annuities)
How to use a discount factor (either as ordinary annuity or annuity due) to deterimne equal payments on a loan, example is for a loan given the loan amount, interest rate, and duration of the loan, calculate the payments using discounted cash flow formula (PVOA/PVOA factor = payment amount), use the discount factor from the appropriate table (annuity tables), the example uses a cash flow diagram detail how the calculation is made along with the loan amounts, etc., also shown is how the payments...
Related topics : loan calculator payment amount / calculating loan payments formula / interest rates loan
Effective Interest Rate Calculation With Calculator, Effective Interest Amortization & Recording
Calculating the effective interest rate on a loan (note or bond debt) using a financial calculator based on the cash flows knowing the present value, future value, number of periods and interest payments made (knowing PV,FV,N periods,PMT), using the effective interest rate the loan (note) is amortized for any premium or discount to deterime any increased or reduction in interest expense realized, recording the loan (debt) showing how the amortized premium or discount affects the interest...
Related topics : calculating loan interest / interest rates loan
Present Value And Future Value (Defined, Calculated Based On Loan Amortization)
Understanding present value and future values for discounted cash flows for single sum amounts, how to calculate using a debt amortization schedule, example reviews both present and future values based on cash flow diagrams, where (1) present value is unknown and future value is discounted back to its present value (to determine present value) knowning the interest rate and number of periods (time frame) and (2) future value is unknown and present value is discounted forward to its future...
Related topics : loan calculator with amortization schedule / calculating loan interest
Effective Interest Method (Premium & Discount Amortization, Effective Interest Rate & Expense)
How to use the effective interest method to amortize debt (note, bond, loan) issued at a premium or discount to deterime the effective interest expense, determining the effective interest rate using a financial calculator, the effective interest rate is used to amortize the premium or discount on the debt issued, the difference between debt cash payment and effective interest for the period equals the amount of principal to be amortized, (1) cash payment minus the amortized amount of premium...
Related topics : interest rates loan
Notes Payable (Negative Amortization Of A Loan Issued As A Note, Increase In Principal)
Accounting for negative amortization for a note (loan), based on the payment amount the note is not (Loan) principal is not reduced sufficently and the interest costs are increased, the example is where to generate more sales a Car Dealer offers a low down payment and no payments for the first year for a customer purchasing a new car, on (1/1/20X1) customer purchases a new car for ($21,000), signing a (3-Yr) Note with annual interest rate (12%) & down payment of ($1,000), Dealer offers zero...
Related topics : payment car loan