Prepare a note amortization schedule for buffalo bank

Assignment Help Accounting Basics

Reference no: EM132219759

Question - On December 31, 2017, Flint Company signed a $ 1,038,100 note to Buffalo 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, Flint's financial situation worsened. On December 31, 2019, Buffalo Bank determined that it was probable that the company would pay back only $ 622,860 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $ 1,038,100 loan.

Determine the amount of cash Flint received from the loan on December 31, 2017.

Prepare a note amortization schedule for Buffalo Bank up to December 31, 2019.

Determine the loss on impairment that Buffalo Bank should recognize on December 31, 2019.

Reference no: EM132219759

Questions Cloud

Discuss either the cost leadership : Using the Value Chain model, discuss either the Cost Leadership or the Differentiation Opportunities and the challenges to those opportunities.

Discussion on the breakeven and potential profits : ACC00724 - Accounting for Managers - Southern cross university - How has your earlier educational background influenced your understanding of this subject

What is the role of demand forecasting : What is the role of demand forecasting? Discuss the benefits of using the SCOR five performance attributes.

Post an explanation of the role of lobbying and campaigning : Respond to at least two colleagues by explaining the various costs you think will be associated with their suggested policy changes.

Prepare a note amortization schedule for buffalo bank : On December 31, 2017, Flint Company signed a $ 1,038,100 note to Buffalo Bank. Prepare a note amortization schedule for Buffalo Bank

Bananas to buyer in New Orleans under CIF contract : Suppose a seller in Panama sells a container of bananas to a buyer in the New Orleans under a CIF contract.

What are the main health concerns that affect people at work : What are the main health concerns that affect people at work? What are some of the major ways we can reduce workplace stress?

What is efficient turnover : What is Efficient Turnover? What does a worker's earnings depend on?

What journal entry giant make to record such impairment : If Giant determined that entire amount of goodwill from its investment in Small was impaired in 2018, what journal entry Giant make to record such impairment

User Account

All Pages