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On December 31, 2017, Kingbird Company borrowed $71,214 from Paris Bank, signing a 5-year, $120,000 zero-interest- rate note. The note was issued to yield 11%
On December 31, 2017, Kingbird Company borrowed $71,214 from Paris Bank, signing a 5-year, $120,000 zero-interest- rate note. The note was issued to yield 11% interest. Unfortunately, during 2019, Kingbird began to experience financial difficulty. As a result, at December 31, 2019, Paris Bank determined that it was probable that it would collect only $90,000 at maturity. The market rate of interest on loans of this nature is now 12%. Click here to view factor tables Prepare the entry (if any) to record the impairment of the loan on December 31, 2019, by Paris Bank. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g 58,971. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec 31
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