Question: On December 31, 2017, Wildhorse Company signed a $1,105,800 note to Sheffield 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, Wildhorse's financial situation worsened. On December 31, 2019, Sheffield Bank determined that it was probable that the company would pay back only $663,480 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,105,800 loan.
Prepare a note amortization schedule for Sheffield Bank up to December 31, 2019. (Round answers to 0 decimal places, e.g. 5,275.)
Note Amortization Schedule (Before Impairment)
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Date
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Cash Received
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Interest Revenue
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Increase in Carrying Amount
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Carrying Amount of Note
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12/31/17 |
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$
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12/31/18 |
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![](https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_693eb0ff-162c-4040-8931-d3fe17491d9d.gif)
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![](https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_693eb0ff-162c-4040-8931-d3fe17491d9d.gif)
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![](https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_693eb0ff-162c-4040-8931-d3fe17491d9d.gif)
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![](https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_693eb0ff-162c-4040-8931-d3fe17491d9d.gif)
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12/31/19 |
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![](https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_693eb0ff-162c-4040-8931-d3fe17491d9d.gif)
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![](https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_693eb0ff-162c-4040-8931-d3fe17491d9d.gif)
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![](https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_693eb0ff-162c-4040-8931-d3fe17491d9d.gif)
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![](https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_693eb0ff-162c-4040-8931-d3fe17491d9d.gif)
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