Current Attempt in Progress

On December $31,2023,$ Green Bank enters into a debt restructuring agreement with Metlock Inc., which is now experiencing financial

trouble. The bank agrees to restructure a $$2-$million, $10\%$ note receivable issued at par by the following modifications:

Reducing the principal obligation from $$2$ million to $$1\mathrm{.}9$ million

Extending the maturity date from December $31,2023,$ to December $31,2026$

Reducing the interest rate from $10\%$ to $8\%$

Metlock pays interest at the end of each year. On January $1,2027,$ Metlock pays $$1\mathrm{.}9$ million in cash to Green Bank. Metlock prepares

financial statements in accordance with IFRS $9.$

$($b$)$

Your Answer

Prepare an entry at December $31,2023,$ based on the results of your calculation. $($Round answers to $0$ decimal places, eg$.5,275.$

Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No

Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

December

$31,2023$

Debit

Credit

Notes Payable

Gain on Restructuring of Debt

$($c$)$

Prepare an effective interest amortization table for the remaining term of the note. $($Round answers to $0$ decimal places, eg$.5,250.$

METLOCKINC.

INTEREST PAYMENT SCHEDULE AFTER DEBT

RESTRUCTURING

EFFECTIVE INTEREST RATE

Cash

Interest

Increase

of

Carrying

Amount

Carrying

Amount

of Note

$

Effective

Interest. Please Solve part b$.$ I will like your answer, thank you!!