Refer to Practice 12-22. Assume all of the same facts except that the principal repayment amount will

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Refer to Practice 12-22. Assume all of the same facts except that the principal repayment amount will be dropped to $8,000 (from $10,000) instead of to $5,000.

(1) Make the journal entry necessary on the company’s books to record this debt restructuring.

(2) Compute the amount of interest expense that will be recognized next year.

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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Question Posted: Jan 28, 2012 05:35 AM

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Refer to Practice 12-22. Assume all of the same facts except that the principal repayment amount will

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1 Undiscounted sum of payments to be made Maturity value 8000 Annual interest payments 5 x 800 4000 ...View the full answer

Intermediate Accounting

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