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, 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 $

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, Nash Company signed a $1,035,300 note to Crane 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, Nash's financial situation worsened. On December 31, 2027, Crane Bank determined that it was probable that the company would pay back only $621,180 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,035,300 loan. (a) Your answer is incorrect. Determine the amount of cash Nash 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 Nash received from the loan $ Prepare a note amortization schedule for Crane Bank up to December 31, 2022. (Round answers to O decimal places, eg. 5,275) Note Amortization Schedule (Before Impairment) Cash Received 128430…
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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
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.
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