Chapter 14 4/20 Question 9 of 22 Show Attempt History Current Attempt in Progress On December 31, 2020, Blue 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 $ 2,100,000 note receivable by the following modifications: 1. 2. Reducing the principal obligation from $2,100,000 to $ 1,680,000 Extending the maturity date from December 31, 2020, to January 1, 2024, Reducing the interest rate from 12% to 10%. 3. Barkley pays interest at the end of each year. On January 1, 2024, Barkley Company pays $ 1,680,000 in cash to Blue Bank. Answer the following questions related to Blue Bank (creditor) (a) A A 9 llo 14 Question 9 of 22 4/20 (1) Compute the loss that Blue Bank will suffer from the debt restructuring. (Round answer to O decimal places, e.g. 38,548.) Loss on restructuring of debt $ (2) Prepare the journal entry to record the loss. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2020 e Textbook and Media List of Accounts 14 (A)