Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I just need the numbers for interest revenue for each journal entry. Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $35

image text in transcribedimage text in transcribed

I just need the numbers for interest revenue for each journal entry.

Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $35 million, 10% unsecured note. The note was signed January 1, 2014, and was due December 31, 2027. Annual interest was last paid on December 31, 2022. At January 1, 2024 , Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. Note: Use appropriate factor(s) from the tables provided. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 ) Required: Prepare all journal entries by First Lincoln Bank to record the restructuring and any remaining transactions, for current and future years, relating to the debt under each of the independent circumstances below: 1. First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $31 million but carried on Rothschild Chai Company's books at $28 million. 2. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b) reduce the remaining four interest payments to $2.0 million each, and (c) reduce the principal to $30 million. Answer is not complete. Complete this question by entering your answers in the tabs below. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b) reduce the remaining four interest payments to $2 million each, and (c) reduce the principal to $30 million. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate and final answer to whole dollars. \begin{tabular}{|c|c|c|c|c|c|} \hline No & Date & General Journal & & Debit & Credit \\ \hline \multirow[t]{3}{*}{1} & January 01,2024 & Bad debt expense & & 11,669,960 & \\ \hline & & Interest receivable & & & 3,500,000 \\ \hline & & Allowance for uncollectible accounts & & & 8,169,960 \\ \hline \multirow[t]{3}{*}{2} & December 31, 202 & Cash & & 2,000,000 & \\ \hline & & Allowance for uncollectible accounts & & & \\ \hline & & Interest revenue & & & \\ \hline \multirow[t]{3}{*}{3} & December 31, 202 & Cash & & 2,000,000 & \\ \hline & & Allowance for uncollectible accounts & & & \\ \hline & & Interest revenue & & & \\ \hline \multirow[t]{3}{*}{4} & December 31, 202 & Cash & & 2,000,000 & \\ \hline & & Allowance for uncollectible accounts & & & \\ \hline & & Interest revenue & & & \\ \hline \multirow[t]{3}{*}{5} & December 31, 202 & Cash & & 2,000,000 & \\ \hline & & Allowance for uncollectible accounts & & & \\ \hline & & Interest revenue & & & \\ \hline \multirow[t]{3}{*}{6} & December 31, 202 & Cash & & 30,000,000 & \\ \hline & & Allowance for uncollectible accounts & & 5,000,000 & \\ \hline & & Notes receivable & & & 35,000,000 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Benefits Management How To Increase The Business Value Of Your IT Projects

Authors: John Ward, Elizabeth Daniel

2nd Edition

1119993261, 9781119993261

More Books

Students also viewed these Accounting questions

Question

Find the following. (10x 3.5 + 4x 1 ) dx

Answered: 1 week ago

Question

(4) What is the difference between the two and why?

Answered: 1 week ago