Question: II. Accounting for a troubled debt restructuring (10 points). On December 31, 2020, Short Co. is in financial difficulty and cannot pay a note due

II. Accounting for a troubled debt restructuring (10 points). On December

II. Accounting for a troubled debt restructuring (10 points). On December 31, 2020, Short Co. is in financial difficulty and cannot pay a note due that day. It is a $2,000,000 note with $200,000 accrued interest payable to Bryan, Inc. Bryan agrees to forgive the accrued interest, extend the maturity date to December 31, 2022, and reduce the interest rate to 4%. The present value of the restructured cash flows is $1,712,000. Instructions a. Prepare the journal entry to restructure on the debt on Short's books (include a brief explanation): b. Prepare Short's journal entry to record the payment on December 31, 2021 (include a brief explanation)

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