$On$ December $31,2025,$ American Bank enters into a debt restructuring agreement with Flint Company, which $is$ now experiencing

financial trouble. The bank agrees $to$ restructure $a12\%,$ issued $at$ par, $$3,250,000$ note receivable $by$ the following modifications:

Reducing the principal obligation from $$3,250,000to$ $$2,600,000.$

Extending the maturity date from December $31,2025,to$ January $1,2029.$

Reducing the interest rate from $12\%to10\%.$

Flint pays interest $at$ the end $of$ each year. $On$ January $1,2029,$ Flint Company pays $$2,600,000in$ cash $to$ American Bank.

$(a)$ Assuming that the interest rate Flint should use $to$ compute interest expense $in$ future periods $is1\mathrm{.}4276\%,$ prepare the interest

payment schedule $of$ the note for Flint Company after the debt restructuring. $(Round$ answers $to0$ decimal places, $e.g.38,548.)(d)$

Prepare the interest payment entry for Flint Company $on$ December $31,2027.(Round$ answers $toO$ decimal places, $e.g.38,548.Ifno$ entry $is$ required, select $"No$ Entry" for the account titles and enter $O$ for the amounts. Credit account titles are automatically indented when the amount $is$ entered. $Do$ not indent manually. List all debit entries before credit entries.$)$

Date Account Titles and Explanation

December

$31,2027(e)$

What entry should Flint make $on$ January $1,2029?(Round$ answers $to0$ decimal places, $e.g.38,548.Ifno$ entry $is$ required, select $"No$

Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount $is$ entered. $Do$

not indent manually. List debit entry before credit entry.$)$

Debit

Credit