Idealist company secured a 1 year bank loan of 4000000 on october 1, 2014. The loan was discounted at 10%.
The entity signed a note for the loan and pledged 5000000 of its accounts receivable as collateral for the same. The accounting period of the entity ends on december 31 , 2014.
Required:
1. Prepare journal entriess including adjustment from the date of loan up to date of maturity.
2. Statement presentation of the bank loan with adequate disclosure on December 31, 2014.