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  3. on december 31, 2020, pharoah company signed a $1,

On December 31, 2020, Pharoah Company signed a $1,132,500 note to Novak Bank. The market...

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Accounting

On December 31, 2020, Pharoah Company signed a $1,132,500 note to Novak 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, Pharoahs financial situation worsened. On December 31, 2022, Novak Bank determined that it was probable that the company would pay back only $679,500 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,132,500 loan.

Determine the amount of cash Pharoah 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 Pharoah received from the loan

Prepare a note amortization schedule for Novak Bank up to December 31, 2022.

Determine the loss on impairment that Novak Bank should recognize on December 31, 2022. (

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