On January 1, 2023, Pharoah Limited issued a $1,008,000, five-year, zero-interest-bearing note to Northern Savings Bank. The note was issued to yield 9% annual interest. Unfortunately, during 2023 Pharoah fell into financial trouble due to increased competition. After reviewing all available evidence on December 31, 2023, Northern Savings Bank decided that the loan was impaired and that there was a significant change in credit risk. Pharoah will probably pay back only $672,000 of the principal at maturity. For simplicity, assume that this reflects the probability-weighted amount. Both Pharoah 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. (a) Your answer is correct. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, prepare journal entries for both Pharoah and Northern Savings Bank to record the issuance of the note on January 1, 2023. Use the result from the financial calculator or Excel function PV. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 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 0 for the amounts. List all debit entries before credit entries.) Your answer is correct. Assuming that both Pharoah and Northern Savings Bank use the effective interest method to amortize the discount, prepare the amortization schedule for the note. (Round answers to 0 decimal places, e.g. 5,275. Do not leave any answer field blank. Enter O for amounts.) Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, estimate the loss that Northern Savings Bank will suffer from Pharoah's financial distress on December 31, 2023. (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, e.g. 1.25124 and final answers to 0 decimal places, e.g. 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 O for the amounts. List all debit entries before credit entries.) On January 1, 2023, Pharoah Limited issued a $1,008,000, five-year, zero-interest-bearing note to Northern Savings Bank. The note was issued to yield 9% annual interest. Unfortunately, during 2023 Pharoah fell into financial trouble due to increased competition. After reviewing all available evidence on December 31, 2023, Northern Savings Bank decided that the loan was impaired and that there was a significant change in credit risk. Pharoah will probably pay back only $672,000 of the principal at maturity. For simplicity, assume that this reflects the probability-weighted amount. Both Pharoah 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. (a) Your answer is correct. Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, prepare journal entries for both Pharoah and Northern Savings Bank to record the issuance of the note on January 1, 2023. Use the result from the financial calculator or Excel function PV. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 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 0 for the amounts. List all debit entries before credit entries.) Your answer is correct. Assuming that both Pharoah and Northern Savings Bank use the effective interest method to amortize the discount, prepare the amortization schedule for the note. (Round answers to 0 decimal places, e.g. 5,275. Do not leave any answer field blank. Enter O for amounts.) Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, estimate the loss that Northern Savings Bank will suffer from Pharoah's financial distress on December 31, 2023. (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, e.g. 1.25124 and final answers to 0 decimal places, e.g. 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 O for the amounts. List all debit entries before credit entries.)