On December $31,2023,$ Green Bank enters into a debt restructuring agreement with Teal Mountain Inc., which is now experiencing

financial trouble. The bank agrees to restructure a $$2\mathrm{.}1-$million, $10\%$ note receivable issued at par by the following modifications:

Reducing the principal obligation from $$2\mathrm{.}1$ million to $$2\mathrm{.}00$ million

Extending the maturity date from December $31,2023,$ to December $31,2026$

Reducing the interest rate from $10\%$ to $8\%$

Teal Mountain pays interest at the end of each year. On January $1,2027,$ Teal Mountain pays $$2\mathrm{.}00$ million in cash to Green Bank. Teal

Mountain prepares financial statements in accordance with IFRS $9.$

$($b$)$

Prepare an entry at December $31,2023,$ based on the results of your calculation. $($Round answers to $0$ decimal places, e$.$g$.$

$5,275.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry

is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

December

$31,2023$