Presented below is an amortization schedule related to Spangler Company's 5-year, $100,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2012, for $108,660. Date Cash Received Interest Revenue Bond Premium Amortization Carrying Amount of Bonds

12/31/11 $108,660

12/31/12 $7,000 $5,433 $1,567 107,093

12/31/13 7,000 5,354 1,646 105,447

12/31/14 7,000 5,272 1,728 103,719

12/31/15 7,000 5,186 1,814 101,905

12/31/16 7,000 5,095 1,905 100,000

Spangler agredd with Cogswell the debtor to restruture the debt on dec 31 2013. They reduced the principal from 100000 to 60,000 reduced stated interest rate from 7% to 6% and extended the maturity date to 12/31/18. Required: 1. Compute Spangler creditor loss on restructuring that should be reported on 12/31/13 and record the journal entry. 2. Compte the gain on restructuring if any that cogswell should report on 12/31/13 and record the journal entry.