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need help journalizing and recalculating #6 Exercise 7-27 Interest-bearing notes receivable, impairment On December 31, 2020, Conchita Martinez Company signed a $1,000,000 note to Sauk
need help journalizing and recalculating #6 Exercise 7-27 Interest-bearing notes receivable, impairment On December 31, 2020, Conchita Martinez Company signed a $1,000,000 note to Sauk City Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Conchita Martinez's financial situation worsened. On December 31, 2022, Sauk City Bank determined that it was probable that the company would pay back only $600,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid based on the original $1,000,000 principal. Instructions: Complete the note amortization table. Cash Received Interest Revenue Discount Amortization Discount Balance Date 12-31-2020 12-31-21 12-31-22 Carrying Value 927,908.00 939,256.96 951,967.80 100,000 100,000 111,348.96 112,710.84 11,348.96 12,710.84 11,348.96 24,059.80 Aabbed Albede AaBbCcDc Accodes BCcDc Normal No Spacing Heading Heating 2 LA Headings Instructions: Journalize the transactions for the note origination and interest recognition for the first 2 years. Acco Date Account Debit Credit 5 of 10 Chapter 07 Homework - Notes Receivable Recalculate the carrying value of the note pursuant to the events that occurred on December 31, 2022 Instructions: Prepare the journal entry to record the note impairment. Account Debit Date Credit than of the notes receivable as it would appear on the #6 Exercise 7-27 Interest-bearing notes receivable, impairment On December 31, 2020, Conchita Martinez Company signed a $1,000,000 note to Sauk City Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Conchita Martinez's financial situation worsened. On December 31, 2022, Sauk City Bank determined that it was probable that the company would pay back only $600,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid based on the original $1,000,000 principal. Instructions: Complete the note amortization table. Cash Received Interest Revenue Discount Amortization Discount Balance Date 12-31-2020 12-31-21 12-31-22 Carrying Value 927,908.00 939,256.96 951,967.80 100,000 100,000 111,348.96 112,710.84 11,348.96 12,710.84 11,348.96 24,059.80 Aabbed Albede AaBbCcDc Accodes BCcDc Normal No Spacing Heading Heating 2 LA Headings Instructions: Journalize the transactions for the note origination and interest recognition for the first 2 years. Acco Date Account Debit Credit 5 of 10 Chapter 07 Homework - Notes Receivable Recalculate the carrying value of the note pursuant to the events that occurred on December 31, 2022 Instructions: Prepare the journal entry to record the note impairment. Account Debit Date Credit than of the notes receivable as it would appear on the
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