Long Term Loans Canada: Available In Secured And Unsecured Variants
Long term
loans Canada are famous for varieties and dimensions. Loans are available, according to the norms of the finance market, in secured and unsecured variants. The top-ranking banks in Canada have specific schemes on
loans for the business world and for the individuals. In the following lines the features of Long term loans Canada have been described.
Loans in secured variant are advanced in flexible terms and very good amount of money is advanced when a longer repayment period is allowed and interest is charged at very lower rate.
Canadian Imperial Bank of Commerce, Bank of Montreal, Toronto Dominion Bank, Royal Bank of Canada, and Bank of Nova Scotia are the first class banks in Canada. Homes, pieces of land, cars, investments etc. are used as collateral in Canada. Long term
loans in Royal Bank of Canada are advanced against equity of the debtors' homes or by pledging cash-stocks-government bonds and such kinds of investment.
All kinds of property are not given equal weight as collateral. Assured investments and real estates have greater weight to Toronto Dominion Bank. While advancing long term loans relationship of the clients with the bank and their history of credit are duly and even strictly assessed. Companies which have been in the business for at least two years get long term
loans in secured variant from Canadian Imperial Bank of Commerce and minimum amount of the
loan stands as $50, 000. The rate of interest fluctuates with the variation of the prime rate.
Companies and individuals can secure long term
secured loans from Bank of Nova Scotia and $500, 000 may be borrowed against worthy collateral asset. The repayment tenure depends on amount and purpose of the loans and on the nature of collateral property. Commercial loans are offered within the range of $25.000 to $250, 000 by the Bank of Montreal and the debtors must be entrepreneurs in Canada for more than two years.
Most of the financial and banking institutions of Canada offer long term
unsecured loans and they approve the loans on the basis of rates of income and credit ratings of the borrowers. As the
lending agencies are to take greater risks interest in such loans are fixed at higher rates and tenure for repayment is allowed over a short period.
Borrowers who have capacity and who have maintained good history of credit can get minimum amount of $5, 500 as
unsecured loans by the Bank of Montreal which determines the repayment duration within a period between 1 year and 10 years. The rate of interest is of course greater than what it is in case of secured loans. Toronto Dominion bank gives personal loans on the basis of employment record, monthly income, bonuses, overtime etc.
The lowest amount of long term unsecured
loan advanced by Canadian Imperial Bank is $3, 000 and the interest may be fixed at variable or fixed rate. The unsecured long term loans in Royal Bank of Canada range from $5000 to $50, 000 and the duration for repayment is allowed between 1 year and 5 years.
In this way long term loans Canada are of various forms and of different dimensions. In Canada the financial institutions and banks have greater authority to advance or not to advance
loans to companies or individuals and they have more discretion to determine terms and conditions.
Michael Smith is specializing in writing articles on Long Term Loans. For more information about the author please visit
http://www.longtermloans.ca
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Help with accounting journal entries and check my work please!?
These are the entries I need to make....
a)Issued 6,000 additional shares of capital stock for $30,000 cash.
b)Borrowed $10,000 on 1/1/2010 from Chase as a long term loan.
Interest for the year is $700, payable on 1/3/2011.
c)Petty Cash Fund was established on 6/1/2010 for $200
d)Paid $5,100 cash on 9/1/2010 to lease a truck for 1 year.
e)Received $1,800 on 11/1/2010 from a tenant for 6 months rent.
f)Paid $900 on 12/1/2010 for one year insurance policy.
g) Purchased $250 supplies for cash.
h)Purchased inventory for $80,000 on account.
i)Sold inventory for $210,000 on Account; cost of the inventory sold was $140,000.
j)Collected $95,000 cash from customers Accounts Receivable.
k)Paid $65,000 cash for inventory purchased during the year.
l)Paid $34,000 for sales reps salaries; including $3,500 owed at the beginning 1/1/2010.
m)Paid dividends of $5,450 on 10/31/2010.
Purchases a truck on 10/1/2010, $25,000 cash; straight line depreciation 5 years useful life.
n)The income taxes payable for 12/31/2009 were paid.
0) All prepaid expenses are recorded as assets & unearned revenue as liabilities
p)At 12/31/2010, $400 worth of supplies are on hand
q)At 12/31/2010, additional $4,000 of sales salaries are owed, but not yet paid.
r)Income tax expense is based on 35% corporate tax rate.
This is what I have.....
Journal Entries at 12/31/2010
a)Cash 30,000
Common Stock 30,000
b)Cash 10,000
Notes Payable 10,000
Intrest Expense 700
Interest Payable 700
c)Petty Cash Fund 200
Cash 200
d)Lease Expense 5,100
Cash 5,100
e)Cash 1,800
Accounts Receivable1,800
f)Prepaid Insurance 900
Cash 900
g)Supplies 250
Cash 250
h)Inventory 80,000
Accounts Payable 80,000
i)Accounts Receivable 210,000
Sales 210,000
Cost of Goods Sold 140,000
Inventory 140,000
j)Cash 95,000
Accounts Receivable 95,000
k)Inventory Expense 65,000
Cash 65,000
l)Accrued Salaries 3,500
Salary Expense 30,500
Cash 34,000
m)Dividends Payable 5,450
Cash 5,450
Truck 25,000
Cash 25,000
n)Income Taxes Payable 3,200
Cash 3,200
Did I do it right?
I also have no idea how to do the last 4 entries....need help.
I got the income tax amount from the balance sheet.
Thanks!!
Get the answers
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