Perry National Bank has a note receivable of $200,000 from Mogren Company that it is carrying at face value and is due on December 31, 2020. Interest on the note is payable at 9% each December 31. Mogren paid the interest due on December 31, 2016, but informed the bank that it would probably miss the next 2 years interest payments because of its financial difficulties. After that, it expected to resume its annual interest payments, but it would make the principal payment one year late, with interest paid for that additional year at the time of the principal payment.

Required:

1.	Compute the value of the impaired loan on December 31, 2016.
2.	Prepare the journal entries from 2016 to 2021 for the bank to record the above events.

CHART OF ACCOUNTS

Perry National Bank

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
125	Notes Receivable
141	Inventory
152	Prepaid Insurance
165	Allowance for Doubtful Notes
181	Equipment
189	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
431	Interest Income

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Prepare the journal entries from 2016 to 2021 for the bank to record the events. Additional Instructions

PAGE 2016PAGE 2017PAGE 2018PAGE 2019PAGE 2020PAGE 2021 (!!!!!!PLEASE FILL PAGES 2016, 2017, 2018, 2019,2020, AND 2021!!!!!!!!!!!!!!!!)

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4

Compute the value of the impaired loan on December 31, 2016. Additional Instructions