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Need help with the following journal entries: Originated $60 million in loans drawing on a line of credit. 5% annual interest, compounded weekly. There is
Need help with the following journal entries:
- Originated $60 million in loans drawing on a line of credit. 5% annual interest, compounded weekly. There is an origination fee of 1.35% of gross loan value
- After 1 week, origination is sold for $62 million cash, which pays off the line of credit and any interest
- After 1 month, origination is repurchased at 25% from investors, drawing on credit and held for investment. Investors were paid a 2.5% one-time premium on the repurchase
- 60% of repurchased origination was in default and required write-off. Held for investment write-offs allowance was set up
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