![4 HW Problems Help Save & Exit Sub my wor Exercise 14-34 Troubled debt restructuring; modification of terms [Appendix B] At January 1, 2018, Brainard Industries, Inc., owed Second Bancorp $26 million under a 10% note due December 31, 2020. Interest was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. b. Reduce the remaining two years interest payments to $2 million each and delay the first payment until December 31, 2019. c. Reduce the unpaid principal amount to $24 million. Required: Prepare the journal entries by Brainard Industries, Inc., necessitated by the restructuring of the debt at (1) January 1, 2018; (2) December 31, 2019; and (3) December 31, 2020. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select No journal entry required in the first account field.) Journal entry worksheet Record the restructuring of the debt on January 1, 2018. K Prev 9 of 10](http://img.homeworklib.com/questions/d91f66b0-7148-11ea-b14d-03665eea1ddc.png?x-oss-process=image/resize,w_560)
Homework Answers
| a) | |||
| Date | Account Titles and Explanations | Debit | Credit |
| January 1, 2018 | Interest payable (10% x $26,000,000) | 26,00,000.00 | |
| Notes payable ($2 million x 2) + $24 million) - $26 Million | 20,00,000.00 | ||
| Gain on troubled debt restructuring | 6,00,000.00 | ||
| Book value = $26 million x (1+ 10%) | $ 2,86,00,000.00 | ||
| Future payments:($2 million x 2) + $24 million | $ 2,80,00,000.00 | ||
| Gain on troubled debt restructuring | $ 6,00,000.00 | ||
| b) | |||
| December 31, 2019 | Notes Payable | 20,00,000.00 | |
| Cash | 20,00,000.00 | ||
| c) | |||
| December 31, 2020 | Notes Payable | 20,00,000.00 | |
| Cash | 20,00,000.00 | ||
| December 31, 2020 | Notes Payable | 2,40,00,000.00 | |
| Cash | 2,40,00,000.00 | ||
Add Answer to:
4 HW Problems Help Save & Exit Sub my wor Exercise 14-34 Troubled debt restructuring; modification...
Another question: Record the payment of the debt at maturity. Exercise 14-34 Troubled debt restructuring; modification...
Another question: Record the payment of the debt at
maturity.
Exercise 14-34 Troubled debt restructuring; modification of terms (Appendix B] At January 1, 2018, Brainard Industries, Inc., owed Second BancCorp $29 million under a 10% note due December 31, 2020. Interest was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year...
Exercise 14-34 Troubled debt restructuring; modification of terms (Appendix B) At January 1, 2018, Brainard Industries,...
Exercise 14-34 Troubled debt restructuring; modification of terms (Appendix B) At January 1, 2018, Brainard Industries, Inc., owed Second BancCorp $14 million under a 10% note due December 31, 2020. Interest was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. b. Reduce the remaining two years' interest payments...
Help Save & Exit Subm Check my work Exercise 14-35 Troubled debt restructuring: modification of terms;...
Help Save & Exit Subm Check my work Exercise 14-35 Troubled debt restructuring: modification of terms; unknown effective rate [Appendix B] At January 1, 2018, NCI Industries, Inc. was indebted to First Federal Bank under a $252,000, 8% unsecured note. The note was signed January 1,2014, and was due December 31, 2019. Annual interest was last paid on December 31, 2016. NCI was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. First Federal...
Help Save&Exit Submit At January 1, 2018, Brainard Industries Inc. owed Second BancCorp $21 minion under...
Help Save&Exit Submit At January 1, 2018, Brainard Industries Inc. owed Second BancCorp $21 minion under a 10% not was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modity the e due December 31, 2020. Interest terms of the debt agreement. After negotiation Second BancCorp agreed to b. Reduce the remaining two years interest payments to $2 milion each and delay the first payment until December 31.2019 ints c. Reduce the...
Check my work At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $26 million under...
Check my work At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $26 million under a 10% note due December 31, 2023. Interest was paid last on December 31, 2019. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to a. Forgive the interest accrued for the year just ended. 6. Reduce the remaining two years interest payments to $2 million each and delay the...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $19 million under a 10% note...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $19 million under a 10% note due December 31, 2023. Interest was paid last on December 31, 2019. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. 6. Reduce the remaining two years' interest payments to $1 million each and delay the first payment until...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $23 million under a 10% note...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $23 million under a 10% note due December 31, 2023. Interest was paid last on December 31, 2019. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: Forgive the interest accrued for the year just ended. Reduce the remaining two years’ interest payments to $2 million each and delay the first payment until December 31,...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $22 million under a 10% note...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $22 million under a 10% note due December 31, 2023. Interest was paid last on December 31, 2019. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: Forgive the interest accrued for the year just ended. Reduce the remaining two years’ interest payments to $2 million each and delay the first payment until December 31,...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $20 million under a 10% note...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $20 million under a 10% note due December 31, 2023. Interest was paid last on December 31, 2019. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify th terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. b. Reduce the remaining two years' interest payments to $1 million each and delay the first payment until...
Exercise 7-35 (Algo) Troubled debt restructuring (Appendix 7B] At January 1, 2021, Clayton Hoists Inc. owed...
Exercise 7-35 (Algo) Troubled debt restructuring (Appendix 7B] At January 1, 2021, Clayton Hoists Inc. owed Third BancCorp $13 million, under a 10% note due December 31, 2022. Interest was paid last on December 31, 2019. Clayton was experiencing severe financial difficulties and asked Third BancCorp to modify the terms of the debt agreement. After negotiation Third BancCorp agreed to do the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD...
Another question: Record the payment of the debt at
maturity.
Exercise 14-34 Troubled debt restructuring; modification of terms (Appendix B] At January 1, 2018, Brainard Industries, Inc., owed Second BancCorp $29 million under a 10% note due December 31, 2020. Interest was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year...
Exercise 14-34 Troubled debt restructuring; modification of terms (Appendix B) At January 1, 2018, Brainard Industries, Inc., owed Second BancCorp $14 million under a 10% note due December 31, 2020. Interest was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. b. Reduce the remaining two years' interest payments...
Help Save & Exit Subm Check my work Exercise 14-35 Troubled debt restructuring: modification of terms; unknown effective rate [Appendix B] At January 1, 2018, NCI Industries, Inc. was indebted to First Federal Bank under a $252,000, 8% unsecured note. The note was signed January 1,2014, and was due December 31, 2019. Annual interest was last paid on December 31, 2016. NCI was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. First Federal...
Help Save&Exit Submit At January 1, 2018, Brainard Industries Inc. owed Second BancCorp $21 minion under a 10% not was paid last on December 31, 2016. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modity the e due December 31, 2020. Interest terms of the debt agreement. After negotiation Second BancCorp agreed to b. Reduce the remaining two years interest payments to $2 milion each and delay the first payment until December 31.2019 ints c. Reduce the...
Check my work At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $26 million under a 10% note due December 31, 2023. Interest was paid last on December 31, 2019. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to a. Forgive the interest accrued for the year just ended. 6. Reduce the remaining two years interest payments to $2 million each and delay the...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $19 million under a 10% note due December 31, 2023. Interest was paid last on December 31, 2019. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. 6. Reduce the remaining two years' interest payments to $1 million each and delay the first payment until...
At January 1, 2021, Brainard Industries, Inc., owed Second BancCorp $20 million under a 10% note due December 31, 2023. Interest was paid last on December 31, 2019. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify th terms of the debt agreement. After negotiation Second BancCorp agreed to: a. Forgive the interest accrued for the year just ended. b. Reduce the remaining two years' interest payments to $1 million each and delay the first payment until...
Exercise 7-35 (Algo) Troubled debt restructuring (Appendix 7B] At January 1, 2021, Clayton Hoists Inc. owed Third BancCorp $13 million, under a 10% note due December 31, 2022. Interest was paid last on December 31, 2019. Clayton was experiencing severe financial difficulties and asked Third BancCorp to modify the terms of the debt agreement. After negotiation Third BancCorp agreed to do the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD...
Most questions answered within 3 hours.
-
Describe how to distinguish true motility from brownian motion
and fluid flow when viewing a wet...
asked 2 minutes ago -
A manufacturer of game controllers is concerned that its
controller may be difficult for left-handed users....
asked 4 minutes ago -
Water at gauge pressure of 3.8 atmospheres at street level
enters an office building at 0.60...
asked 18 minutes ago -
Quick question, I want to know how to convert decimal numbers to
binary number, when i...
asked 39 minutes ago -
You found out that now you are going to receive payments of
$8,500 for the next...
asked 42 minutes ago -
17.
Technician A says that leaking components are usually repaired
rather than replaced. Technician B says...
asked 43 minutes ago -
A) An Operon is:?
1- A gene that affect another gene
transcription.
2. A gene coding...
asked 50 minutes ago -
When opening a file, use this method to determine whether a file
exists before you attempt...
asked 54 minutes ago -
Sales total $300,000 when variable costs total $180,000 and
fixed costs are $60,000. Breakeven sales total:...
asked 1 hour ago -
1)
To calculate the depth of a water well, an explorer drops a stone and with...
asked 58 minutes ago -
0.429-g sample of gas occupies 125 mL at 60. cm of Hg and 25°C.
The molar...
asked 1 hour ago -
The
pH of a 0.90M solution of boric acid (H3BO3) is measured to be
4.64.
Calculate...
asked 1 hour ago