Question
In: Accounting
On January 10, 2017, CitiDev Corp., a real estate developer signed a construction loan agreement with...
On January 10, 2017, CitiDev Corp., a real estate developer signed a construction loan agreement with Citibank of $100 million for a development project in Midtown, Manhattan. The loan is to be disbursed over the construction period and the loan balance is due 3 years after the completion of the project. The loan bears interest rate at 8 percent. On March 15th 2017, Citibank disbursed $5 million of the $100 million to CitiDev. Citibank withheld $500k of the $5 million as loan closing costs, hence, the undrawn loan balance after the disbursement was $95 million. What journal entry should CitiDev Corp record upon the loan disbursement on March 15th, 2017?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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