Question
Skysong Corp. owes $280,000 to Concord Trust. The debt is a 10-year, 12% note due December 31, 2020. Because Skysong Corp. is in financial trouble,
Skysong Corp. owes $280,000 to Concord Trust. The debt is a 10-year, 12% note due December 31, 2020. Because Skysong Corp. is in financial trouble, Concord Trust agrees to extend the maturity date to December 31, 2022, reduce the principal to $225,000, and reduce the interest rate to 6%, payable annually on December 31.
(b)Prepare the journal entries on Concord Trusts books on December 31, 2020, 2021, 2022.
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Financial Accounting International Financial Reporting Standards Global Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison
11th Edition
9781292211145
