Jan 1st, 2022: Mars borrows from Sun Bank a loan of $50 million at 8% interest with five years to maturity. Interest payments are to be made annually at the end of the year. 

Dec 31st, 2022: Mars did not pay 2022’s interest and is in financial difficulty. Mars and Sun Bank renegotiate the debt such that Mars will owe $3 million in interest for each of the next 4 years and $35 million only as principal. 2022’s interest is forgiven. 

Record all journal entries of Sun Bank between Jan 1st, 2022, and December 31st, 2022.

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This is a question about recording transactions in financial accounts particularly for a bank Here a... View the full answer