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Please explain how to do the chart. please show formulas. i am really confused. thank you. On December 1, 2020, American Bank enter into a
Please explain how to do the chart. please show formulas. i am really confused. thank you. On December 1, 2020, American Bank enter into a debt restructuring agreement with Wildhorse Company, which is now experiencing financial trouble. The bank agrees to restructure a 12% $ 1. Reducing the principal obligation from $2,110,000 to $1,688,000. 2. Extending the maturity date from December 31, 2020, to January 1, 2024 3. Reducing the interest rate from 12 to 10%. Wildhorse pays Interest at the end of each year. On January 1, 2024, Wildhorse Company pays $1,688,000 in cash to American Bank Assuming that the interest rate Wildhorse should use to compute interest expense in future periods is 1.4276%, prepare the interest payment schedule of the note for Wildhorse Company after the debt restructuring (Round answers to o decimal places, e.g. 38,548.) WILDHORSE COMPANY Interest Payment Schedule After Debt Restructuring Effective-Interest Rate Reduction Carrying Cash Interest of Carrying Amount of Date Paid Expense Amount Note 12/31/20 0 0 2,110,000 12/31/21 168800 12/31/22 166800 12/31/23 168800 Total
Please explain how to do the chart. please show formulas. i am really confused. thank you.
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