Question: Using the information provided in BE14-32. prepare the journal entry to record the effect of the call on the debtor's financial statements under IFRS. Data

Using the information provided in BE14-32. prepare the journal entry to record the effect of the call on the debtor's financial statements under IFRS.

Data from BE14-32

Braylon Brands, Inc., borrowed $2,000,000 from Home Town Bank. The note payable had a term of 5 years and carried a 6 % coupon interest. Because of an inadequate credit score, BrayIon Brands agreed to several restrictive debt covenants. The debt agreement requires the company to maintain a 3-to-1 working capital ratio. Home Town Bank's review of the company's year-end financial statements indicated that BrayI on achieved a working capital ratio of only 2 to 1. As a result, Home Town Bank will call in the loan within 3 months of the balance sheet date.

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