$*$E$13\mathrm{.}25($LO $5)($Term Modification with Gain$-$Creditor's Entries$)$ Using the same information as in E$13\mathrm{.}22$ and E$13\mathrm{.}24,$ answer the following questions related to American Bank $($creditor$).$

Instructions

a$.$ Compute the loss American Bank will suffer under this new term modification. Prepare the journal entry to record the loss on American's books.

b$.$ Prepare the interest receipt schedule for American Bank after the debt restructuring.

c$.$ Prepare the interest receipt entry for American Bank on December $31,2026,2027,$ and $2028.$

d$.$ What entry should American Bank make on January $1,2029?$