Question

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 first payment until December 31, 2022 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, 2021 (2) December 31, 2022; and (3) December 31, 2023. (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.) View transaction list Journal entry worksheet 1 2 3 4 Record the restructuring of the debt on January 1, 2021. Note: Enter debits before credits General Journal Debit Credit January 01, 2021 < Prev 15 of 17 !!! Next >

Answer 1

Answet Page on From the problem Required gowinal & B stainard Industries, Inc. L Date 2021 particulars Debit ($) credit ($) 1) january is interest payable (10bx26000000) 2600000 notes payable (ef @million xX) + 2000000 $ 24 mill-alb mille Ganon troubled debt reststu 24000000 (difference) -eting (2) December 31, notes payable 2000000 2022 Cash Prevised "interest'amount) - 3) December 31, notes payable 2000000 2023 cash (Received interest "amount 2000000 December 31, Notes payable 24000000 9023 cash (Revised "principal "amount - 24000000 2000000