Question: I need help on this problem please. i need to show all the work also On December 31, 2003, the Merchant Bank enters into a

I need help on this problem please. i need to show all the work also

On December 31, 2003, the Merchant Bank enters into a debt restructuring agreement with Shrek Company, which is now experiencing financial trouble. The bank agrees to restructure a 10%, issued at par, $1,000,000 note receivable by the following modifications: Reducing the principal obligation to $800,000 Extending the maturity date to 12/31 /05 Reducing the interest rate to 6% Prepare all journal entries from 12-31-03 to 12-31- 05 for both parties (debtor and creditor), and explain the interest rate assumed by the debtor and creditor after the restructuring. Show all your work

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