Problem 7-15 On January 1, 2017, Pronghorn Company issued a $1,201,500, 5-year, zero-interest-bearing note to Stellar Bank. The note was issued to yield 10% annual interest. Unfortunately during 2018 Pronghorn fell into financial trouble due to increased competition. After reviewing all available evidence on December 31, 2018, Stellar Bank decided that the loan was impaired. Pronghorn will probably pay back only $801,000 of the principal at maturity Prepare journal entries for both Pronghorn Company and Stellar Bank to record the issuance of the note on January 1, 2017. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manual.) No. Account Titles and Explanation Debit Credit Pronghorn Company (Debtor): Stellar Bank (Creditor): Assuming that both Pronghorn Company and Stellar 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 field blank. Enter 0 for the amounts.) SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION EFFECTIVE-INTEREST METHOD $1,201,500 Note Issued to Yield 10% Cash Paid Interest Expense Discount Amortized Carrying Amount of Note Date 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 Total Screenshot saved The screenshot was added to your Compute the loss Stellar Bank will suffer from Pronghorn's financial distress on December 31, 2018. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275 Loss due to impairment What journal entries should be made to record this loss? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and finalanswers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Stellar Bank (Creditor) Debit Credit LINK TO TEXT