Using the information provided in BE14-32. prepare the journal entry to record the effect of the call

Question:

Using the information provided in BE14-32. prepare the journal entry to record the effect of the call on the debtor's financial statements under IFRS.

Data from BE14-32

Braylon Brands, Inc., borrowed $2,000,000 from Home Town Bank. The note payable had a term of 5 years and carried a 6 % coupon interest. Because of an inadequate credit score, BrayIon Brands agreed to several restrictive debt covenants. The debt agreement requires the company to maintain a 3-to-1 working capital ratio. Home Town Bank's review of the company's year-end financial statements indicated that BrayI on achieved a working capital ratio of only 2 to 1. As a result, Home Town Bank will call in the loan within 3 months of the balance sheet date.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Coupon
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