Complete part D

Exercise 14-23 (Part Level Submission) On December 31, 2017, the Pine Bank enters into e deot restructuring sgrement with Barkiey Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, S3, 800,000 note receivable by the folowing modric ations: Reducing the principal obligation from $3,800,000 to $3,040,000. 2. 1. Extending the maturity date from December 31, 2017, to January 1, 2021. 3. Reducing the interest rate from 12% to 10%. Barkley pays Interest at: the end of each year. On January 1, 2021, Barkdley Company pays s3,040,000 in cash to Pina Bank. Answer the following questions related to Pina Bank (creditor) Your answer is correct. what interest rate should Pina Bank use to calculate the loss on the debt restructuring? (Round answer to 0 decimal places ea. is%) Interest rate SHOW LIST OF ACCOUNTS SHw Attempts: 1 of 3 used Y (b) Your answer is correct (u) Compute the loss that Pina Bank will suffer from the debt resetructuring. (Round answer to 0 decimal places, e.9. 38,548) Loss on restructuring of debt 90603 (2) Prepare the automatically indented when amount is entered. Do not indent manualy.) entry to record the loss. (If no entry is required, select "No Entry" for the account titles and ter O for the amounts. Credit account titles are Account Tles and Explanation Debit Credit December 31, 2017 Bad Debt Expense 906032 Allowance for Doubtful Accounts 906032 SNOW LIST OF ACCOUNTS SHow SOLUTION OW ANSWER Attempts: 2 of 3 used Y (c) Your answer is correct. Prepare the interest receipt schedule for Pina Bank after the debt restructuring. (Round answers to o decimal places, e.g. 38,548.) PINA BANK Interest Receipt Schedule After Debt Restructuring Effective-Interest Rate Increase Interest in Carrying Amount of Amount Carrying Cash Received Date Revenue Note 12/31/17 | 12/31/18 T 304000 r 347276)1 .1- 293724s 43276 12/31/19 2985715 12/31/20 - 304000 358286 1-54286) 3040000 Total 1058031 146031 ANSWER Attempts: 2 of 3 used Version 4.24.12