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#9 Problem 7-15 Zero-interest notes receivable, impairment On January 1, 2020, Botosan Company issued a $1,200,000, 5-year, zero-interest-bearing note to National Organization Bank. The note was issued to yield 8% annual interest. Unfortunately, during 2021 Botosan fell into financial trouble due to increased competition. After reviewing all available evidence on December 31, 2021, National Organization Bank decided that the loan was impaired. Botosan will probably pay back only $800,000 of the principal at maturity. Instructions: Complete the note amortization table. Cash Interest Discount Discount Carrying Date Received Revenue Amortization Balance Value 1 8 of 10 Chapter 07 Homework - Notes Receivable Instructions: Journalize the transactions for the note origination and interest recognition for the first 2 years for the lender Date Account Debit Credit ish (United States) Insert Focus 2 A E 4 5 6 7 8 Account Debit Date Credit I Recalculate the carrying value of the note pursuant to the events that occurred on December 31, 2021. Instructions: Prepare the journal entry to record the note impairment. Date Account Debit Credit Instructions: Provide the net realizable presentation of the notes receivable as it would appear on the December 31, 2021 balance sheet. 12/31/2021 ish (United States) Insert O Focus B / U 3 A E 5 6

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