On December 1, year 1, Frick Co. gave Frack Co. a $200,000, 11% loan. Frick...
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Accounting
On December 1, year 1, Frick Co. gave Frack Co. a $200,000, 11% loan. Frick paid proceeds of $194,000 after the deduction of a $6,000 nonrefundable loan origination fee. Principal and interest are due in sixty monthly installments of $4,310 beginning January 1, year 2. The repayments yield an effective interest rate of 11% at a present value of $200,000 and 12.4% at a present value of $194,000. Prepare Frick's the general journal adjusting entry(ies), without explanation, for year 1 related to all revenue & expenses for the loan. (Round final calculation to nearest whole dollar.)
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