At January 1, 2021, Clayton Hoists Inc. owed Third BancCorp $18 million, under a 10% note due December 31, 2022. Interest was paid last on December 31, 2019. Clayton was experiencing severe financial difficulties and asked Third BancCorp to modify the terms of the debt agreement. After negotiation Third'BancCorp agreed to do the following: (FV of \$1, PV of \$1, EVA of \$1, PVA of \$1. FVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.): - Forgive the interest accrued for the year just ended. - Reduce the remaining two years' interest payments to $1 million each. - Reduce the principal amount to $17 million. Required: 1-3. Prepare the journal entries by Third BancCorp necessitated by the restructuring of the debt at January 1, 2021, December 31, 2021 and December 31, 2022. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.) Journal entry worksheet Record the restructuring of the debt at January 1. Note: Enter debits before credits. January 1, 2021, Clayton Hoists Inc owed Third BancCorp $18 million, under a 10% te due December 31, 2022. Interest was paid last on December 31, 2019. Clayton was periencing severe financial difficulties and asked Third BancCorp to modify the terms the debt agreement. After negotiation Third BancCorp agreed to do the following: (FV) 51. PV of \$1. EVA of \$1. PVA of \$1. FVAD of S1 and PVAD of S1) (Use appropriate stor(s) from the tables provided.): Forgive the interest accrued for the year just ended. Reduce the remaining two years' interest payments to $1 million each. Reduce the principal amount to $17 miliion. quired: 1. Prepare the journal entries by Third BancCorp necessitated by the restructuring of 2 debt at January 1, 2021, December 31, 2021 and December 31, 2022. (Enter your swers in whole dollars. If no entry is required for a transaction/event, select "No irnal entry required" in the first account field. Round your final answers to nearest tole dollar amount.) Journal entry worksheet January 1, 2021, Clayton Hoists Inc. owed Third BancCorp $18 million, under a 10%. te due December 31, 2022. Interest was paid last on December 31, 2019. Clayton was periencing severe financial difficulties and asked Third BancCorp to modify the terms the debt agreement. After negotiation Third BancCorp agreed to do the following: (FV \$1, PV of \$1. EVA of \$1, PVA of \$1. FVAD of \$1 and PVAD of \$1) (Use appropriate stor(s) from the tables provided.): Forgive the interest accrued for the year just ended. Reduce the remaining two years' interest payments to $1 million each. Reduce the principal amount to $17 million. quired: 1. Prepare the journal entries by Third BancCorp necessitated by the restructuring of 3 debt at January 1, 2021, December 31, 2021 and December 31, 2022. (Enter your swers in whole dollars. If no entry is required for a transaction/event, select "No srnal entry required" in the first account field. Round your final answers to nearest sole dollar amount.) Journal entry worksheet Note: Enter debits before credits. 3ry 1, 2021, Clayton Hoists Inc. owed Third BancCorp $18 million, under a 10% 2 December 31, 2022. Interest was paid last on December 31, 2019. Clayton was icing severe financial difficulties and asked Third BancCorp to modify the terms abt agreement. After negotiation Third BancCorp agreed to do the following: (FV 1 of \$1. EVA of \$1. PVA of \$1, FVAD of \$1 and PVAD of S1) (Use appropriate I from the tables provided.): ve the interest accrued for the year just ended. ce the remaining two years' interest payments to $1 million each. ce the principal amount to $17 million. d: Jare the journal entries by Third BancCorp necessitated by the restructuring of : at January 1, 2021, December 31, 2021 and December 31, 2022. (Enter your i in whole dollars. If no entry is required for a transaction/event, select "No entry required" in the first account field. Round your final answers to nearest ollar amount.) urnal entry worksheet ecord the collection of the note receivable. : Enter debits before credits
