Question

Prepare a note amortization schedule for Kingbird Bank up to December 31, 2022. (Round answers to O decimal places, e.g. 5,275.) Note Amortization Schedule (Before Impairment) Cash Received Increase in Carrying Amount Interest Revenue Carrying Amount of Note Date 12/31/20 12/31/21 $ 12/31/22 e Textbook and Media Determine the loss on impairment that Kingbird Bank should recognize on December 31, 2022. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answer to 0 decimal places, e.g. 5,275.) Loss due to impairment $ e Textbook and Media

Answer 1

Aniyoy Notes Payable I Notes payable is the instrument given by the bank to its customer Customers of Bagh will pay the interent on outstanding Lootes payable balance. It is good form of earning interest income on the money due toda a Calculation of Gil received by Blue Corporation from the logn . Cash received by the elye corporation from the logn is calculated by present uplye of interest plus present value of principal. The || technique of preregt value is because the company's 1099 is myty wing in the 5th year. Therefore we will have eakulate present value of both interest and princlpal X ... Annual Interest on logy of Noles Pijpble : Vglue of Notes lopphle Sealed In levert Rate of Notes Pyylle 10 % : - $ 1284300 X $ 128430. Glellation of Gsh Received by Blue Corporation 46296 L Aerent value of $ 128430 X/ET T T Interest 11.1275) $128430 x T 3.6047 $ 1284300 728746 Present Value of Notes Payable (1.12?] $ 1284 300 X 0.5674 1191707 Total Cash Received. .

Amortization schedule for king bord Bank upto December 31, 2012 - Kingbird Bath issued a note payable on the discount of the cash receivel is less than the face value of notes payable le (1284300 > 1197107) In rech silygtion company will have to amortize discount every year. Notes Receivable Amortization - (Before ampeirement) 9 To e : ex 12 c-b. Logbe Gih Reeiver Interest Rourque Inwease in Grrying value 1143)/30 - 143005 14575 144734 16324 e et de Grrying amount of Note U9) 707 1206282 1431/4 | [16/31/22 128430 128430 1222606 Determination of impliment loss that kiggbord Bagh_Becognized og Dearyles / 432 - Oye to decrease in sple of client Blye compily at the end of seoni yepu ie Desember 31, 2012 it_ is probable that king lied Bagh becerived 0464 $ 770930_J9_such siteption we will have olaylgbe impairment. loss by collylating 99d dedydligy present value of interest: qod principal for remaining 3 years from the carrying uglye of note qt the end of 27 year. 1222606 - Glulation of Impairment 6055 Carrying Valye of Notes Payable_qr of Des 31, 2022 Prenent valye of Interest - (128430 (1 ): $128430 X 2.40)23/_L(3034672 : Interest ((1.1373/ principal | 779580 x 1 : 770580 X 0.707) (1.12) Impairment loss 365655