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anuary 1 , 2 0 2 4 , Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $ 3 5 million, 1
anuary Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $ million, unsecured note. The note was signed January and was due December Annual interest was last paid on December Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. Required: Prepare all journal entries by Rothschild Chair Company, Incorporated, to record the restructuring and any remaining transactions relating to the debt under each of the independent circumstances below: First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $ million but carried on Rothschild Chair Companys books at $ million. First Lincoln Bank agreed to a forgive the interest accrued from last year, b reduce the remaining four interest payments to $ million each, and c reduce the principal to $ million. First Lincoln Bank agreed to defer all payments including accrued interest until the maturity date and accept $ at that time in settlement of the debt. Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $Complete this question by entering your answers in the tabs below. Required irst Lincoln Bank agreed to defer all payments including accrued interest until the maturity date and acc lat time in settlement of the debt. ote: Enter your answers in whole dollars. If no entry is required for a transactionevent select No journa le first account field. tableDateGeneral Journal,Debit,CreditJanuary No journal entry required,December Interest expense,Interest payable,
anuary Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $ million, unsecured note. The note was signed January and was due December Annual interest was last paid on December Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement.
Required:
Prepare all journal entries by Rothschild Chair Company, Incorporated, to record the restructuring and any remaining transactions relating to the debt under each of the independent circumstances below:
First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $ million but carried on Rothschild Chair Companys books at $ million.
First Lincoln Bank agreed to a forgive the interest accrued from last year, b reduce the remaining four interest payments to $ million each, and c reduce the principal to $ million.
First Lincoln Bank agreed to defer all payments including accrued interest until the maturity date and accept $ at that time in settlement of the debt.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $Complete this question by entering your answers in the tabs below.
Required
irst Lincoln Bank agreed to defer all payments including accrued interest until the maturity date and acc lat time in settlement of the debt.
ote: Enter your answers in whole dollars. If no entry is required for a transactionevent select No journa le first account field.
tableDateGeneral Journal,Debit,CreditJanuary No journal entry required,December Interest expense,Interest payable,
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