CALCULATOR FULL SCREEN PRINTER VERSION BACK INEX Exercise 14-24 On December 31, 2020, American Bank enters into a debt restructuring agreement with Pina Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $3,100,000 note receivable by the following modifications: 1. Reducing the principal obligation from $3,100,000 to $2,080,000. 2. Extending the maturity date from December 31, 2020, to January 1, 2024 3. Reducing the Interest rate from 12% to 10% Pina pays Interest at the end of each year. On January 1, 2024, Pina Company pays $2,080,000 in cash to American Bank. Can Pina Company record a gain under this term modification? If yes, compute the gain for Pina Company. If no, enter amount as 0. The gain for Pina Company LINK TO TEXT Prepare the journal entries to record the gain on Pina's books. (Il ne entry is required, select "No Enter for the ele Alam Prepare the journal entries to record the gain on Pina's books. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit LINE TO TEXT What interest rate should Pina ute to compute its interest expense in future periode? (Round answer to decimal places, ...) The gain LINK TO TEXT PINA COMPANY Interest Payment Schedule After Debt Restructuring Effective-Interest Rate Reduction Interest of Carrying Expense Amount Cash Paid Carrying Amount of Note Date 12/31/20 $ 12/31/21 12/31/22 12/31/23 Total LINK TO TEXT Prepare the interest payment entries for Pina Company on December 31, of 2021, 2022, and 2023. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2021 December 31, 2022 December 31, 2023 LINK TO TEXT What entry should Pina make on January 1, 20242 (If no entry is required, select "No Entry for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Cred January 1, 2024 LINK TO TEXT