On December $31,2025,$ American Bank enters into a debt restructuring agreement with Flounder Company, which is now experiencing financial trouble. The bank agrees to restructure a $12\%,$ issued at par, $$2,930,000$ note receivable by the following modifications:

$1.$ Reducing the principal obligation from $$2,930,000$ to $$2,344,000.$

$2.$ Extending the maturity date from December $31,2025,$ to January $1,2029.$

$3.$ Reducing the Interest Rate from $12\%$ to $10\%.$

Flounder pays interest at the end of each year. On January $1,2029,$ Flounder Company Pays $$2,344,000$ in cash to American Bank.

$($c$)$ Assuming that the Interest Rate Flounder Should use to compute interest Expense in future periods is $1\mathrm{.}4276\%,$ prepare the interest payment schedule of the note for Flounder Company after the debt restructuring.

Date Cash Paid Interest Expense Reduction of Carrying Amount Carrying Value of Note

$========================================================================================================================================$

$12/31/25$

$12/31/26$

$12/31/27$

$12/31/28$

$========================================================================================================================================$

Total

$($d$)$ Prepare the interest payment entry for Flounder Company on December $31,2027.$

$($e$)$ What entry should Flounder make on January $1,2029?$