On December 31, 2017, Short Co. is in financial difficulty and cannot pay a note due that day. It is a $2,000,000 face value note with $200,000 accrued interest payable to Bryan, Inc. The original market rate of interest on the note was 12.58613%. Bryan agrees to forgive the accrued interest, extend the maturity date (two years) to December 31, 2019, and reduce the interest rate to 4%. The present value of the restructured cash flows is $1,712,000 (using the original market rate). Do NOT add rows to the spreadsheet! Required (The debtor) 1. Prepare any journal entry (if any) on the date of the restructured debt needed on Short's books (the Debtor). Otherwise, leave blank. Debit accounts Credit accounts Notes payable Interest payable Dr=Cr Debits 2,000,000 2,000,000 2. Prepare the journal entry for the payment of the cash interest on December 31, 2018 on Short's books (the Debtor) Debit accounts Credit accounts Debits Credits 200,000 200,000 Credits Dr Cr Required: (The Creditor) 1. Prepare any journal entry (if any) on the date of the restructured debt needed on Bryan's books (the Creditor) Debit accounts Credit accounts Debits Credits Dr=Cr 2. Prepare the amortization schedule needed by the creditor (Bryan) for the modified loan. Historical rate = 0.1258613 Pmt Interest revenue Cash 1 2 Amorization Carrying Value Space for work Space for work