Troubled debt d Company d has an unpaid note for $50,000 onJanuary 1,2011. The note was written at 12% annual interest. Thereis also accrued of $6,000 company c transfer a piece of land to thebank in partial satisfaction of the note. The land has a cost of$16,000 and market value $18,000 The bank reduce the loan by thevalue of the land and agrees to forgive the accrued interest and toreduce the loan balance to $23,000 the bank the requires fourannual future payments of $7,572.39 due each December 31, startingon December 31,2011 For the debtor make entries on the date ofrestructure (January 1,2011) prepare an amortization table and makethe entry on December 31, 2011 For the bank make entries on thedate of restructure prepare an amortization table and make theentry on December 31, 2011
Troubled debt d Company d has an unpaid note for $50,000 onJanuary 1,2011. The note was written at 12% annual interest. Thereis also accrued of $6,000 company c transfer a piece of land to thebank in partial satisfaction of the note. The land has a cost of$16,000 and market value $18,000 The bank reduce the loan by thevalue of the land and agrees to forgive the accrued interest and toreduce the loan balance to $23,000 the bank the requires fourannual future payments of $7,572.39 due each December 31, startingon December 31,2011 For the debtor make entries on the date ofrestructure (January 1,2011) prepare an amortization table and makethe entry on December 31, 2011 For the bank make entries on thedate of restructure prepare an amortization table and make theentry on December 31, 2011
