(e) What entry should American Bank make on January 1, 2021? 14-24 ILO6) (Term Modification with Gain--Debtor's Entries) Use the same information as in E14-22 above except that merican Bank reduced the principal to $1,900,000 rather than $2,400,000. On January 1, 2021, Barkley pays $1,900,000 in cash American Bank for the principal. structions (a) Can Barkley Company record a gain under this term modification? If yes, compute the gain for Barkley Company (b) Prepare the journal entries to record the gain on Barkley's books. (c) What interest rate should Barkley use to compute its interest expense in future periods? Will your answer be the same as in E14-22 above? Why or why not? interest payment schedule of the note for Barkley Company after the debt restructuring. (d) Prepare the (e) Prepare the interest payment entries for Barkley Company on December 31, of 2018, 2019, and 2020 (f) What entry should Barkley make on January 1, 2021? in E14-22 and E14-24, -25 (L06) (Term Modification with Gain-Creditor's Entries) Using the same information as ver the following questions related to American Bank (creditor). uctions record the i merican Bank will suffer under this new term modification. Prepare the journal entry to (e) What entry should American Bank make on January 1, 2021? 14-24 ILO6) (Term Modification with Gain--Debtor's Entries) Use the same information as in E14-22 above except that merican Bank reduced the principal to $1,900,000 rather than $2,400,000. On January 1, 2021, Barkley pays $1,900,000 in cash American Bank for the principal. structions (a) Can Barkley Company record a gain under this term modification? If yes, compute the gain for Barkley Company (b) Prepare the journal entries to record the gain on Barkley's books. (c) What interest rate should Barkley use to compute its interest expense in future periods? Will your answer be the same as in E14-22 above? Why or why not? interest payment schedule of the note for Barkley Company after the debt restructuring. (d) Prepare the (e) Prepare the interest payment entries for Barkley Company on December 31, of 2018, 2019, and 2020 (f) What entry should Barkley make on January 1, 2021? in E14-22 and E14-24, -25 (L06) (Term Modification with Gain-Creditor's Entries) Using the same information as ver the following questions related to American Bank (creditor). uctions record the i merican Bank will suffer under this new term modification. Prepare the journal entry to