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Sunland Corp.currently has an issued debenture outstanding with Abbra Bank. The note has a principal of $2 million, was issued at face value and interest

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Sunland Corp.currently has an issued debenture outstanding with Abbra Bank. The note has a principal of $2 million, was issued at face value and interest is payable at 7%. The term of the debenture was 10 years, and was issued on December 31, 2013. The current market rate for this debenture is 9%. Sunland Corp. has been experiencing financial difficulties and has asked Abbra Bank to restructure the note. Both Sunland and Abbra Bank prepare financial statements in accordance with IFRS. It is currently December 31, 2020 For each of the following independent situations related to the above scenario, prepare the journal entries that Sunland Corp. and Abbra Bank would make for the restructuring that is described (c) Your answer is partially correct. Abbra Bank agrees to modify the note by allowing Sunland not to pay the interest of the note for the remaining period. (Hint: Refer to Chapter 3 for tips on calculating and use the time value of money tables.) Assume that the bank had not previously recognized any loss on impairment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts, Round discount factors to 6 decimals eg. 0.527500 and final answers to 0 decimal places, eg. 5,275.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. On the books of Sunland Corporation: On the books of Sunland Corporation: Account Titles and Explanation Debit Credit Notes Payable 2000000 Notes Payable 1544367 Gain on Restructuring of Debt 455633 On the books of Abbra Bank: Account Titles and Explanation Debit Credit Modification Gain or Loss Notes Receivable 1 14C Notes Payable 1544367 Gain on Restructuring of Debt 455633 On the books of Abbra Bank: Account Titles and Explanation Debit Debit Credit Modification Gain or Loss Notes Receivable

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