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On December 3 1 , 2 0 1 9 , Jermaine Co . has agreed with Laura Bank to restructure its $ 2 , 0
On December Jermaine Co has agreed with Laura Bank to restructure its $year, note payable. The note was issued on January when the interest rate was The interest payments are made once a year on December
a Laura Bank has agreed to reduce the principal obligation by and the maturity date remained on December
is this a settlement of debt or a nonsubstantial term modification? Show Calculations
Prepare necessary journal entries on the following dates. Dec & Dec
b Assume instead that Laura Bank has agreed to cancel all interest payments and only collect $ on December
is this a settlement of debt or a nonsubstantial term modification? Show Calculations
Prepare necessary journal entries on the following dates. Dec & Dec
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