SEe attachment two questions

SEe attachment two questions

On January 1, 2014, Botosan Company issued a $1,203,000, 5-year, zero-interest-bearing note to National Organization Bank. The note was issued to yield 9% annual interest. Unfortunately, during 2015 Botosan fell into financial trouble due to increased competition. After reviewing all available evidence on December 31, 2015, National Organization Bank decided that the loan was impaired. Botosan will probably pay back only $802,000 of the principal at maturity. (a) Prepare journal entries for both Botosan Company and National Organization Bank to record the issuance of the note on January 1, 2014 Braddock Inc. had the following long-term receivable account balances at December 31, 2013. Note receivable from sale of division Note receivable from officer $1,200,000 422,000 Transactions during 2014 and other information relating to Braddock's long-term receivables were as follows. 1 . The $1,200,000 note receivable is dated May 1, 2013, bears interest at 9%, and represents the balance of the consideration received from the sale of Braddock's electronics division to New York Company. Principal payments of $400,000 plus appropriate interest are due on May 1, 2014, 2015, and 2016. The first principal and interest payment was made on May 1, 2014. Collection of the note installments is reasonably assured. 2 The $422,000 note receivable is dated December 31, 2013, bears interest at 8%, and is due on . December 31, 2016. The note is due from Sean May, president of Braddock Inc. and is collateralized by 10,550 shares of Braddock's common stock. Interest is payable annually on December 31, and all interest payments were paid on their due dates through December 31, 2014. The quoted market price of Braddock's common stock was $47 per share on December 31, 2014. 3 On April 1, 2014, Braddock sold a patent to Pennsylvania Company in exchange for a . $142,000 zero-interest-bearing note due on April 1, 2016. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2014, was 14%. The present value of $1 for two periods at 14% is 0.769 (use this factor). The patent had a carrying value of $56,800 at January 1, 2014, and the amortization for the year ended December 31, 2014, would have been $11,360. The collection of the note receivable from Pennsylvania is reasonably assured. 4 On July 1, 2014, Braddock sold a parcel of land to Splinter Company for $211,000 under an . installment sale contract. Splinter made a $63,300 cash down payment on July 1, 2014, and signed a 4-year 13% note for the $147,700 balance. The equal annual payments of principal and interest on the note will be $45,300 payable on July 1, 2015, through July 1, 2018. The land could have been sold at an established cash price of $211,000. The cost of the land to Braddock was $162,100. Circumstances are such that the collection of the installments on the note is reasonably assured. Prepare the long-term receivables section of Braddock's balance sheet at December 31, 2014