Prepare a note amortization schedule for buffalo bank

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

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