(f) What entry should Teal make on January 1, 2029? (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 the amount is entered. Do not indent manually. List debit entry before credit entry.) Date January 1, 2029 Account Titles and Explanation eTextbook Notes Receivable eTextbook and Media Cash Save for Later List of Accounts I Debit Credit Assistance Used Attempts: 0 of 3 used Submit Answer

What entry should Teal make on January 1,2029? (If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) On December 31, 2025, American Bank enters into a debt restructuring agreement with Teal Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $3,300,000 note receivable by the following modifications: 1. Reducing the principal obligation from $3,300,000 to $2,220,000. 2. Extending the maturity date from December 31, 2025, to January 1.2029. 3. Reducing the interest rate from 12% to 10%. Teal pays interest at the end of each year, On January 1, 2029. Teal Company pays $2,220,000 in cash to American Bank. (a) Can Teal Company record a gain under this term modification? Prepare the journal entries to record the gain on Teal's books. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit occount titles are outomatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Prepare the interest payment entries for Teal Company on December 31, of 2026, 2027, and 2028. (Record entries in the order displayed in the problem statement. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.)