Exercise 14-25 (Part Level Submission) On December 31, 2020, Pronghorn 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, $2,500,000 note receivable by the following modifications: 1. Reducing the principal obligation from $2,500,000 to $1,650,000. 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 $1,650,000 in cash to Pronghorn Bank. Answer the following questions related to Pronghorn Bank (creditor). (a) Your answer is partially correct. Try again. Compute the loss Pronghorn Bank will suffer under this new term modification. (Round answer to 0 decimal places, e.g. 38,548.) Loss on restructuring of debt 355000 Prepare the journal entry to record the loss on Pronghorn's books. (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, 2020 T Notes Payable 355000 Gain on Restructuring c 355000||