More Ecclesiastical borrowed 165 m from Cromwell Guaranty and Trust on a 20 yr. note that required quarterly payments of 3.4m. Shortly after making the 26th pymt, the marketing prospects for More Ecclesiastical principal product line deteriorated and the head of the business was summarily removed, More Ecclesiastical and Cromwell Guaranty and Trust agreed to restructure the note by decreasing each quarterly payment to 600k and guaranteeing payments through the assignment of property rights to a portfolio of real estate.

QUESTION: book the restructuring and the first subsequent payment (#27) for Cromwell Guaranty and Trust and More Ecclesiastical.

Answer rating: 100% (QA)

The first subsequent payment 27 for ME will be recorded as Note payable ac ... View the full answer