Exercise 14-23 On December 31, 2020, American 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 $3,000,000 note receivable by the following modifications: 1. Reducing the principal obligation from $3,000,000 to $2,400,000 2. Extending the maturity date from December 31, 2020, to January 1, 2024. 3. Reducing the interest rate from 12% to 10% Barkley pays interest at the end of each year. On January 1, 2024, Barkley Company pays $2,400,000 in cash to American Bank. Answer the following questions related to American Bank (creditor). What interest rate should American Bank use to calculate the loss on the debt restructuring? (Round answer to decimal places, e.g. 184.) Interest rate (1) Compute the loss that American Bank will suffer from the debt restructuring. (Round answer to 0 decimal places, 0.g. 38,548.) Loss on restructuring of debt $ (2) Prepare the journal entry to record the loss. (If no entry is required, select "Ma 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 December 31, 2020 Account Titles and Explanation Debit Credit Prepare the interest receipt schedule for American Bank after the debt restructuring. (Round answers to 0 decimal places, e.g.38,548.) AMERICAN BANK Interest Receipt Schedule After Debt Restructuring Effective-Interest Rate Increase Carrying Cash Interest in Carrying Amount of Date Received Revenue Amount 12/31/20 $ 12/31/21 12/31/22 12/31/23 Note Total Prepare the interest receipt entry for American Bank on December 31, 2022. (Round answers to o decimal places, e.g. 38,548. If no entry is required, select "No Entry for the account titles and enter o 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, 2022 What entry should American Bank make on January 1, 20247 (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry for the account titles and enter o 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, 2024