Current Attempt in Progress

On January $1,2023,$ Wildhorse Limited issued a $\backslash$$$1,128,000,$ five$-$year, zero$-$interest$-$bearing note to Northern Savings Bank. The note was issued to yield $\backslash (8\backslash \%\backslash )$ annual interest. Unfortunately, during $2023$ Wildhorse fell into financial trouble due to increased competition. After reviewing all available evidence on December $31,2023,$ Northern Savings Bank decided that the loan was impaired and that there was a significant change in credit risk. Wildhorse will probably pay back only $\backslash (\backslash$$ $752,000\backslash )$ of the principal at maturity. For simplicity, assume that this reflects the probability$-$weighted amount. Both Wildhorse and Northern Savings Bank prepare financial statements in accordance with IFRS $9.$

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

$($a$)$

$($d$)$

Using $(1)$ factor tables, $(2)$ a financial calculator, or $(3)$ Excel function PV$,$ estimate the loss that Northern Savings Bank will suffer

from Wildhorse's financial distress on December $31,2023.($Hint: Refer to Chapter $3$ for tips on calculating.$)$ What journal entries

should be made to record this loss? $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $0$ decimal places, e$.$g$.$

$5,275.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select

$"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Date Account Titles and Explanation

Debit

Credit

Wildhorse Limited:

December

$31,2023$

Northern Savings Bank:

December

$31,2023$

eTextbook and Media

List of Accounts. COMPLETE $($d$)$