ction III - Notes Receivable (24 points) 35. On December 31, 2017, Ridge Company signed a $1.290.500 note to Third National Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 vears. Note: Present Value Charts are available on the next page. Round all calculations to 0 decimal places (example: $650.30 to $630). Prepare the journal entry made by Third National Bank on December 31, 2017 to record the Note Receivable Note: This chart is available for your use, but it will NOT be graded. Amortization Balance of Of Discount or Interest Cash Premium Discount/Premium Revenue Received Date Carrying Value of Note Receivable 12/31/17 12/31/18 12/31/19 b) Prepare the relevant journal entry by Third National Bank to record interest for the year ended 12/31/18 Prepare the relevant journal entry by Third National Bank to record interest for the year ended 12/31/19. 13 Unfortunately, because of lower sales, Ridge Company's financial situation worsened. On December 31, 2019, Third National Bank determined that it was probable that the company would pay back only $774,300 of the principal at maturity. However, it was considered likely that interest would continue to be paid based on the $1,290,500 loan. Prepare the journal entry to recognize the loss on the impairment that Third National Bank should recognize on December 31, 2019, Periods Present Value of a Single Sum 9% 11% .91743 90090 .84168 .81162 .77218 .73119 .70843 .65873 .64993 59345 Present Value of an Ordinary Annuity 9% 91743 1.75911 2.53130 3.23972 3.88965 11% 90090 1.71252 2.44371 3.10245 3.69590