On January 1, 2020, Ivanhoe Limited issued a $ 1.248.000,5-year, zero-interest-bearing note to Northern Savings Bank. The note was issued to yield 8% annual interest. Unfortunately, during 2020 Ivanhoe fell into financial trouble due to increased competition After reviewing all available evidence on December 31, 2020, Northern Savings Bank decided that the loan was impaired and that there was a significant change in credit risk. Ivanhoe will probably pay back only $ 832,000 of the principal at maturity. For simplicity, assume that this reflects the probability-weighted amount. Both Ivanhoe and Northern Savings Bank prepare financial statements in accordance with IFRS 9. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 Your answer is partially correct. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, prepare journal entries for both Ivanhoe and Northern Savings Bank to record the issuance of the note on January 1, 2020. Use the result from the financial calculator or Excel function PV. (Hint: Refer to Chapter 3 for tips on calculating.) (Round factor values to 5 decimal places.eg. 1.25124 and final answers to o decimal places, eg 5275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Ivanhoe Limited January 1, 2020 Cash Notes Payable Northern Savings Bank: January 1, 2020 Notes Receivable Cash e Textbook and Media List of Accounts * Your answer is incorrect. Assuming that both Ivanhoe and Northern Savings Bank use the effective interest method to amortize the discount, prepare the amortization schedule for the note. (Round answers to decimal places.eg. 5.275. Do not leave any answer field blank. Enter for amounts.) SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION- EFFECTIVE INTEREST METHOD Discount Amortized Date Cash Interest Effective Interest 1/1/20 12/31/20 $ 12/31/21 12/31/22 12/31/23 12/31/24 Total e Textbook and Media List of Accounts * Your answer is incorrect. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, estimate the loss that Northern Savings Bank will suffer from Ivanhoe's financial distress on December 31, 2020. (Hint: Refer to Chapter 3 for tips on calculating.) What journal entries should be made to record this loss? (Round factor values to 5 decimal places.eg. 125124 and final answers to decimal places, eg 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select . "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Ivanhoe Limited: December 31, 2020 Northern Savings Bank: December 31, 2020 On January 1, 2020, Ivanhoe Limited issued a $ 1.248.000,5-year, zero-interest-bearing note to Northern Savings Bank. The note was issued to yield 8% annual interest. Unfortunately, during 2020 Ivanhoe fell into financial trouble due to increased competition After reviewing all available evidence on December 31, 2020, Northern Savings Bank decided that the loan was impaired and that there was a significant change in credit risk. Ivanhoe will probably pay back only $ 832,000 of the principal at maturity. For simplicity, assume that this reflects the probability-weighted amount. Both Ivanhoe and Northern Savings Bank prepare financial statements in accordance with IFRS 9. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 Your answer is partially correct. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, prepare journal entries for both Ivanhoe and Northern Savings Bank to record the issuance of the note on January 1, 2020. Use the result from the financial calculator or Excel function PV. (Hint: Refer to Chapter 3 for tips on calculating.) (Round factor values to 5 decimal places.eg. 1.25124 and final answers to o decimal places, eg 5275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Ivanhoe Limited January 1, 2020 Cash Notes Payable Northern Savings Bank: January 1, 2020 Notes Receivable Cash e Textbook and Media List of Accounts * Your answer is incorrect. Assuming that both Ivanhoe and Northern Savings Bank use the effective interest method to amortize the discount, prepare the amortization schedule for the note. (Round answers to decimal places.eg. 5.275. Do not leave any answer field blank. Enter for amounts.) SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION- EFFECTIVE INTEREST METHOD Discount Amortized Date Cash Interest Effective Interest 1/1/20 12/31/20 $ 12/31/21 12/31/22 12/31/23 12/31/24 Total e Textbook and Media List of Accounts * Your answer is incorrect. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, estimate the loss that Northern Savings Bank will suffer from Ivanhoe's financial distress on December 31, 2020. (Hint: Refer to Chapter 3 for tips on calculating.) What journal entries should be made to record this loss? (Round factor values to 5 decimal places.eg. 125124 and final answers to decimal places, eg 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select . "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Ivanhoe Limited: December 31, 2020 Northern Savings Bank: December 31, 2020