please help me Alpha Corporation is having financial difficulty and therefore has asked Bahrain National Bank to restructure BDS,000,000 note outstanding Thecurrent outstanding note has 3 years remaining and pays a current rate of interest of 10%. The present market rate for a loan of this nature is 12%. Thenote was issued at its face value.Required: Prepare the journal entry that Alpha would make for the following independent cases.A) Bahrain National Bank agrees to take ordinary shares issued by Alpha in exchange for the outstanding note. The shares are valued at BD6,700,000and have a par value of BD3,000,000.B) Bahrain National Bank agrees to modify the terms of the note, by extending the maturity date to 5 more years and reducing the interest rate to 2%.The fair value of the new note is BD3,588,900.

A. Notes payable a/c. Dr. 5000,000 Loss on restructuring of debt. Dr. 1700,000…

Answered: Alpha Corporation is having financial…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 5QE

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