On December 31, 2025, ABC Bank enters into a debt restructuring agreement with ID Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $3,970,000 note receivable by the following modifications:

1.		Reducing the principal obligation from $3,970,000 to $3,176,000.
2.		Extending the maturity date from December 31, 2025, to January 1, 2029.
3.		Reducing the interest rate from 12% to 10%.

ID pays interest at the end of each year. On January 1, 2029, ID Company pays $3,176,000 in cash to ABC Bank.

1. Assuming that the interest rate ID should use to compute interest expense in future periods is 1.4276%, prepare the interest payment schedule of the note for ID Company after the debt restructuring. (Round answers to 0 decimal places, e.g. 38,548.)

ID COMPANY Interest Payment Schedule After Debt Restructuring Effective-Interest Rate
Date		Cash Paid		Interest Expense		Reduction of Carrying Amount		Carrying Value of Note
12/31/25		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
12/31/26		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/27		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
12/31/28		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Total		$enter a total amount		$enter a total amount		$enter a total amount

2. Prepare the interest payment entry for ID Company on December 31, 2027. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2027	enter an account title for the journal entry on December 31, 2027	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2027	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2027	enter a debit amount	enter a credit amount

3. What entry should ID make on January 1, 2029? (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.)

Date	Account Titles and Explanation	Debit	Credit
December 31, 2029	enter an account title for the journal entry on December 31, 2029	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2029	enter a debit amount	enter a credit amount