On December 31, 2020, Swifty Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2.700,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2.700,000 to $2.160.000. Extending the maturity date from December 31, 2020, to January 1, 2024. Reducing the interest rate from 12% to 10% 2. 3. Barkdey pays interest at the end of each year. On January 1, 2024, Barkley Company pays $2.160,000 in cash to Swifty Bank. Answer the following questions related to Swifty Bank (creditor).

On December 31, 2020, Swifty Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2.700,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2.700,000 to $2.160.000. Extending the maturity date from December 31, 2020, to January 1, 2024. Reducing the interest rate from 12% to 10% 2. 3. Barkdey pays interest at the end of each year. On January 1, 2024, Barkley Company pays $2.160,000 in cash to Swifty Bank. Answer the following questions related to Swifty Bank (creditor).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

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