Question
On December 31, 2020, Teal Company signed a $1,022,000 note to Flint Bank. The market interest rate at that time was 11%. The stated interest
On December 31, 2020, Teal Company signed a $1,022,000 note to Flint 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, Teals financial situation worsened. On December 31, 2022, Flint Bank determined that it was probable that the company would pay back only $613,200 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,022,000 loan.
Prepare a note amortization schedule for Flint Bank up to December 31, 2022. (Round answers to 0 decimal places, e.g. 5,275.)
| Note Amortization Schedule (Before Impairment) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Date | Cash Received | Interest Revenue | Increase in Carrying Amount | Carrying Amount of Note | ||||
| 12/31/20 | $enter a dollar amount | |||||||
| 12/31/21 | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | enter a dollar amount | ||||
| 12/31/22 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||
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