On December 31, 2020, American Bank enters into a debt restructuring agreement with Whispering Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,400,000 note receivable by the following modifications:
1. Reducing the principal obligation from $2,400,000 to $1,580,000.
2. Extending the maturity date from December 31, 2020, to January 1, 2024.
3. Reducing the interest rate from 12% to 10%.
Whispering pays interest at the end of each year. On January 1, 2024, Whispering Company pays $1,580,000 in cash to American Bank.
1. Compute the Gain for Whispering Company.
2. Prepare the journal entries to record the gain on Whispering's books
3. what interest rate should Whispering use to complete its interest expense in future periods?
4. Prepare the interest payment schedule of the note for Whispering Company after the debt restructuring
5. Prepare the interest payment journal entries for Whispering Company on December 31, of 2021, 2022, and 2023
6. What entry should Whispering Co.  make on January 1, 2024?