7 On December 31, 2025, Bramble Company signed a $1,086,600 note to Sunland Bank. The market interest rate at that time was 11%.The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales,Bramble's financial situation worsened. On December 31, 2027, Sunland Bank determined that it was probable that the companywould pay back only $651,960 of the principal at maturity. However, it was considered likely that interest would continue to be paid,based on the $1,086,600 loan.(a)Determine the amount of cash Bramble received from the loan on December 31, 2025. (Round present value factors to 5 decimalplaces, e.g. 0.52513 and final answer to O decimal places, e.g. 5,275.)Amount of cash Bramble received from the loan$LA

The notes payable are a current liability for an entity that issues the same. It may be a long-term…

Answered: On December 31, 2025, Bramble Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 31, 2025, Waterway Company signed a $1,228,500 note to Wildhorse Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Waterway's financial situation worsened. On December 31, 2027, Wildhorse Bank determined that it was probable that the company would pay back only $737,100 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,228,500 loan. (a) Your answer is incorrect. Determine the amount of cash Waterway received from the loan on December 31, 2025. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to O decimal places, e.g. 5,275.) Amount of cash Waterway received from the loan $
On December 31, 2020, Concord Company signed a $1,290,500 note to Marigold Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Concord's financial situation worsened. On December 31, 2022, Marigold Bank determined that it was probable that the company would pay back only $774,300 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,290,500 loan. (a) Determine the amount of cash Concord received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.) Amount of cash Concord received from the loan $
On December 31, 2025, Crane Company signed a $1,067,100 note to Cheyenne Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Crane's financial situation worsened. On December 31, 2027, Cheyenne Bank determined that it was probable that the company would pay back only $640,260 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,067,100 loan. (a) Determine the amount of cash Crane received from the loan on December 31, 2025. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to O decimal places, e.g. 5,275.) Amount of cash Crane received from the loan $ eTextbook and Media eTextbook Save for Later Assistance Used Attempts: 0 of 3 used Submit Answer
On December 31, 2020, Sweet Company signed a $1,278,400 note to Pharoah Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Sweet’s financial situation worsened. On December 31, 2022, Pharoah Bank determined that it was probable that the company would pay back only $767,040 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,278,400 loan.
On December 31, 2020, Grouper Company signed a $1,049,400 note to Monty Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Grouper's financial situation worsened. On December 31, 2022, Monty Bank determined that it was probable that the company would pay back only $629,640 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,049,400 loan. (a) Your answer is incorrect. Determine the amount of cash Grouper received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to O decimal places, e.g. 5,275.) Amount of cash Grouper received from the loan $
On December 31, 2020, Pronghorn Company signed a $1,284,300 note to Stellar Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Pronghorn’s financial situation worsened. On December 31, 2022, Stellar Bank determined that it was probable that the company would pay back only $770,580 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,284,300 loan. Determine the amount of cash Pronghorn received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.)
On December 31, 2020, Stellar Company signed a $ 1,022,000 note to Pearl Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Stellar’s financial situation worsened. On December 31, 2022, Pearl Bank determined that it was probable that the company would pay back only $ 613,200 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $ 1,022,000 loan.
On December 31, 2020, Stellar Company signed a $ 1,022,000 note to Pearl Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Stellar's financial situation worsened. On December 31, 2022, Pearl Bank determined that it was probable that the company would pay back only $ 613,200 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $ 1,022,000 loan. (a) Determine the amount of cash Stellar received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.) Amount of cash Stellar received from the loan %24
ACME Incorporated has a $3.1 million dollar, 9% loan, annual interest payments, with BMO maturing on December 31, 2025. Due to decrease revenues caused by the pandemic, the company is experiencing solvency and cash flow issues that have negatively impacted the its ability to make its interest and principal payments. ACME's year end is December 31, and the company reports under IFRS. On January 01, 2021, the bank agreed to reduce the interest rate to 7.5% and extend the maturity date to 2028 (The current market rate is 8%). Required: Round interim calculations to four decimals and final answers to the nearest dollar. 1. Conclude on the appropriate accounting treatment and show calculations to support your conclusion. 2. Prepare the required entry on January 01. 2021 (if any). 3. Prepare the required entry on December 31, 2021 (if any,
On December 31, 2021, London Bank granted a P5,000,000 loan to a borrower with 10% stated rate payable annually and maturing in 5 years. The loan was discounted at the market interest rate of 12%. Unfortunately, the financial condition of the borrower worsened because of lower revenue. On December 31, 2023, the bank determined that the borrower would pay back only P3,000,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid on the P5,000,000 loan. The present value of 1 at 12% is .57 for five periods and .71 for three periods. The present value of an ordinary annuity of 1 at 12% is 3.60 for five periods and 2.40 for three periods. What is the impairment loss to be recognized on December 31, 2023? a. 2,000,000 O b. 1,442,960 O c. 1,922,960 O d. 1,670,000
On December 31, 2020, Conchita Martinez Company signed a $1,000,000 note to Sauk City Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Conchita Martinez’s financial situation worsened. On December 31, 2022, Sauk City Bank determined that it was probable that the company would pay back only $600,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,000,000 loan. Instructions a. Determine the amount of cash Conchita Martinez received from the loan on December 31, 2020. b. Prepare a note amortization schedule for Sauk City Bank up to December 31, 2022. c. Determine the loss on impairment that Sauk City Bank should recognize on December 31, 2022.
On December 31, 2020, JKL Bank granted a P5,000,000 loan to a borrower with 10% stated rate payable annually and maturing in 5 years. The loan was discounted at the market interest rate of 12%. Unfortunately, the financial condition of the borrower worsened because of lower revenue. On December 31 ,2022, the bank determined that the borrower would pay back only P3,000,000 of the principal at maturity. However, it was considered likely that interest would continue to be paid on the P5,000,000 loan. The present value of 1 at 12% is 0.57 for five periods and 0.71 for three periods. In addition, the present value of an ordinary annuity of 1 at 12% is 3.60 for five periods and 2.40 for three periods. Compute for the amount of cash paid to the borrower on December 31, 2020

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