Use the same information as in E14.18 except that Sterling Bank reduced the principal to 1,900,000 rather

Question:

Use the same information as in E14.18 except that Sterling Bank reduced the principal to £1,900,000 rather than £2,400,000. On January 1, 2026, Barkley pays £1,900,000 in cash to Sterling Bank for the principal.

Instructions

a. Prepare the journal entries to record the loan modification for Barkley.

b. Prepare the amortization schedule of the note for Barkley after the debt modification.

c. Prepare the interest payment entries for Barkley on December 31 of 2023, 2024, and 2025.

d. What entry should Barkley make on January 1, 2026?

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Aug 02, 2021 07:47 AM

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Use the same information as in E14.18 except that Sterling Bank reduced the principal to 1,900,000 rather

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a Journal Entry to Record Loan Modification for Barkley Debit Credit Loan Paya...View the full answer

Intermediate Accounting IFRS

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