On December 31, 2020, Tamarisk Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $2,200,000 note receivable by the following modifications:

1.		Reducing the principal obligation from $2,200,000 to $1,440,000.
2.		Extending the maturity date from December 31, 2020, to January 1, 2024.
3.		Reducing the interest rate from 12% to 10%.

Barkley pays interest at the end of each year. On January 1, 2024, Barkley Company pays $1,440,000 in cash to Tamarisk Bank. Answer the following questions related to Tamarisk Bank (creditor).

1. Compute the loss Tamarisk Bank will suffer under this new term modification (Loss on restructuring of debt)

2. Prepare the journal entry to record the loss on Tamarisks books

3. Prepare the interest receipt schedule for Tamarisk Bank after the debt restructuring.

4. Prepare the interest receipt entry for Tamarisk Bank on December 31, 2021, 2022, and 2023.

5. What entry should Tamarisk Bank make on January 1, 2024?