Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 2020, Blossom Company signed a $1,105,800 note to Blue Bank. The market interest rate at that time was 11 % . The

image text in transcribed
image text in transcribed
On December 31, 2020, Blossom Company signed a $1,105,800 note to Blue 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 years. Unfortunately, because of lower sales, Blossom's financial situation worsened. On December 31, 2022, Blue Bank determined that it was probable that the company would pay back only $663,480 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,105,800 loan. Determine the amount of cash Blossom received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275) Amount of cash Blossom received from the loan $ eTextbook and Media Prepare a note amortization schedule for Blue Bank up to December 31, 2022. (Round answers to O decimal places, e.g. 5,275) Note Amortization Schedule (Before Impairment) Increase in Carrying Amount of Cash Interest Carrying Amount Date Received Revenue Note 12/31/20 12/31/21 $ $ 12/31/22 Prepare a note amortization schedule for Blue Bank up to December 31, 2022. (Round answers to O decimal places, eg. 5,275,) Note Amortization Schedule (Before Impairment) Increase in Carrying Amount of Cash Interest Carrying Amount Date Received Revenue Note 12/31/20 $ 12/31/21 $ 12/31/22 eTextbook and Media Determine the loss on impairment that Blue Bank should recognize on December 31, 2022. (Round present value factors to 5 decimal places, e g 0.52500 and final answer to 0 decimal places, eg. 5,275.) Loss due to impairment $ eTextbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions