Question

Exercise 14-25 (Part Level Submission) On December 31, 2017, the Crane Bank enters into a debt restructuring egreement with barkley Company, whicth is now experienciang financial trouble. The bank agrees to restructure a 12%, issued at Dar, $2,500,000 note receivable by the following modifications . Reducing the principal obligation from $2,500,000 to $1,650,000 2. Extending the maturity date from December 31, 2017, to January 1, 2021 3. Reducing the interest rate from 12% to 10%. Barkdley pays interest at the end of each year. On January 1, 2021, Barkley Company pays $1,650,000 in cash to Crane Bank. Answer the following questions related to Crane Bank (creditor). ▼ (a) Compute the loss Crane Bank will suffer under this new term modification. (Round answer to O decimal places, e.g. 38,s48.) Loss on restructuring of debt Prepare the journal entry to record the loss on Crane's books. (Round answers to 0 decimal places, eg. 38,548. Ir no entry is required, select "No Entry" for the account tered. Do not indent manually titles and enter 0 for the amounts. Credit account titles are automatically Indented when amount is en Debit Credit DateAccount Titles and Explanation December.31, 2017 Attempts: 0 of 3 used SAVE FOR LATER SURNTT ANSGSS Version 4.24.12a

B) prepare the interest receipt schedule for crane bank after the debt restructuring

C)prepare the interest receipt entry for crane bank on dec 31, 2018, 2019, and 2020

D) what entry should crane bank make on jan 1 2021

Answer 1