View Current Attempt in Progress On December 31, 2020. Green Bank enters into a debt restructuring agreement with Splish Brothers Inc, which is now experiencing financial trouble. The bank agrees to restructure a $2.4 million, 10% note receivable issued at par by the following modifications: 1. 2 Reducing the principal obligation from $24 million to $2.28 million Extending the maturity date from December 31, 2020, to December 31, 2023 Reducing the interest rate from 10% to 8% 3 . Splish Brothers pays interest at the end of each year. On January 1.2024. Splish Brothers Inc pays $2.28 million in cash to Green Bank. Splish Brothers prepares financial statements in accordance with IFRS 9. imal places, es 5.275 Prepare an effective interest amortization table for the remaining term of the note. (Round answers to 0 decimal places, es. 5.250.) SPLISH BROTHERS INC. INTEREST PAYMENT SCHEDULE AFTER DEBT RESTRUCTURING Increase of Effective Carrying Interest Amount Cash Interest Date $ 12/31/20 S 12/31/21 $ 12/31/22 12/31/23 Total Prepare the interest payment entry for Splish Brothers on December 31, 2022, and the entry on January 1, 2024. (Round answer to decimal places, eg. 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter o for the amounts.) Cre Debit Date Account Titles and Explanation Assume instead that Splish Brothers follows ASPE. Using (1) a financial calculator or (2) Excel function Rate, calculate the rate of interest that Splish Brothers should use to calculate its interest expense in future periods. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answer to 4 decimal places, es 1.2246%) % Rate of interest eTextbook and Media List of Accounts Continuing the assumption of following ASPE, prepare an effective interest amortization table for the remaining term of the note. (Round yield values to 4 decimal places, eg 52.7525 and final answers to decimal places, 68.5,250) SPLISH BROTHERS INC. INTEREST PAYMENT SCHEDULE AFTER DEBT RESTRUCTURING Reduction of Carrying Amount Cash Interest Effective Interest Date $ 12/31/20 12/31/21 $ 12/31/22 12/3123 S Total Continuing the assumption of following ASPE, prepare the interest payment entry for Splish Brothers on December 31, 2022, and the entry on January 1, 2024. (Round answer to decimal places, es 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit Date December 31, 2022 January 1 2024 Current Attempt in Progress On December 31, 2020, Green Bank enters into a debt restructuring agreement with Splish Brothers Inc, which is now experiencing financial trouble. The bank agrees to restructure a $2.4 million, 10% note receivable issued at por by the following modifications: 1. 2. Reducing the principal obligation from $2.4 million to $2.28 million Extending the maturity date from December 31, 2020, to December 31, 2023 Reducing the interest rate from 10% to 8% 3. Splish Brothers pays interest at the end of each year. On January 1, 2024, Splish Brothers Inc. pays $2.28 million in cash to Green Bank. Splish Brothers prepares financial statements in accordance with IFRS 9. Your answer is partially correct. Prepare an entry at December 31, 2020, based on the results of your calculation. (Round answers to decimal places, 24 5.275 Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Credit Debit Date Account Titles and Explanation December 31.2020 Notes Payable Gain on Restructuring of Debt Prepare an effective interest amortization table for the remaining term of the note. (Round answers to decimat places eg 5.250) SPLISH BROTHERS INC. INTEREST PAYMENT SCHEDULE AFTER DEBT RESTRUCTURING Increase of Carrying Amount Carrying Amount of Note Cash Interest Effective Interest $ $ Prepare the interest payment entry for Splish Brothers on December 31, 2022, and the entry on January 1, 2024. Round answer to decimal places, es. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Assume instead that Splish Brothers follows ASPE.Using (1) a financial calculator or (2) Excel function Rate, calculate the rate of interest that Splish Brothers should use to calculate its interest expense in future periods. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answer to 4 decimal places, eg, 1.2246%) 98 Rate of interest Continuing the assumption of following ASPE, prepare an effective interest amortization table for the remaining term of the note. (Round yield values to 4 decimal places, es 52.7525 and final answers to decimal places, es. 5,250) SPLISH BROTHERS INC. INTEREST PAYMENT SCHEDULE AFTER DEBT RESTRUCTURING Reduction of Carrying Amount Carrying Amount of Note Cash Interest Effective Interest $ DIE TUT ING Continuing the assumption of following ASPE, prepare the interest payment entry for Splish Brothers on December 31, 2022. and the entry on January 1, 2024. (Round answer to 0 decimal places, eg. 5,275. Credit account dities are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit December 31, 2022 NIE January 1. 2024 View Current Attempt in Progress On December 31, 2020. Green Bank enters into a debt restructuring agreement with Splish Brothers Inc, which is now experiencing financial trouble. The bank agrees to restructure a $2.4 million, 10% note receivable issued at par by the following modifications: 1. 2 Reducing the principal obligation from $24 million to $2.28 million Extending the maturity date from December 31, 2020, to December 31, 2023 Reducing the interest rate from 10% to 8% 3 . Splish Brothers pays interest at the end of each year. On January 1.2024. Splish Brothers Inc pays $2.28 million in cash to Green Bank. Splish Brothers prepares financial statements in accordance with IFRS 9. imal places, es 5.275 Prepare an effective interest amortization table for the remaining term of the note. (Round answers to 0 decimal places, es. 5.250.) SPLISH BROTHERS INC. INTEREST PAYMENT SCHEDULE AFTER DEBT RESTRUCTURING Increase of Effective Carrying Interest Amount Cash Interest Date $ 12/31/20 S 12/31/21 $ 12/31/22 12/31/23 Total Prepare the interest payment entry for Splish Brothers on December 31, 2022, and the entry on January 1, 2024. (Round answer to decimal places, eg. 5.275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter o for the amounts.) Cre Debit Date Account Titles and Explanation Assume instead that Splish Brothers follows ASPE. Using (1) a financial calculator or (2) Excel function Rate, calculate the rate of interest that Splish Brothers should use to calculate its interest expense in future periods. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answer to 4 decimal places, es 1.2246%) % Rate of interest eTextbook and Media List of Accounts Continuing the assumption of following ASPE, prepare an effective interest amortization table for the remaining term of the note. (Round yield values to 4 decimal places, eg 52.7525 and final answers to decimal places, 68.5,250) SPLISH BROTHERS INC. INTEREST PAYMENT SCHEDULE AFTER DEBT RESTRUCTURING Reduction of Carrying Amount Cash Interest Effective Interest Date $ 12/31/20 12/31/21 $ 12/31/22 12/3123 S Total Continuing the assumption of following ASPE, prepare the interest payment entry for Splish Brothers on December 31, 2022, and the entry on January 1, 2024. (Round answer to decimal places, es 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit Date December 31, 2022 January 1 2024 Current Attempt in Progress On December 31, 2020, Green Bank enters into a debt restructuring agreement with Splish Brothers Inc, which is now experiencing financial trouble. The bank agrees to restructure a $2.4 million, 10% note receivable issued at por by the following modifications: 1. 2. Reducing the principal obligation from $2.4 million to $2.28 million Extending the maturity date from December 31, 2020, to December 31, 2023 Reducing the interest rate from 10% to 8% 3. Splish Brothers pays interest at the end of each year. On January 1, 2024, Splish Brothers Inc. pays $2.28 million in cash to Green Bank. Splish Brothers prepares financial statements in accordance with IFRS 9. Your answer is partially correct. Prepare an entry at December 31, 2020, based on the results of your calculation. (Round answers to decimal places, 24 5.275 Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Credit Debit Date Account Titles and Explanation December 31.2020 Notes Payable Gain on Restructuring of Debt Prepare an effective interest amortization table for the remaining term of the note. (Round answers to decimat places eg 5.250) SPLISH BROTHERS INC. INTEREST PAYMENT SCHEDULE AFTER DEBT RESTRUCTURING Increase of Carrying Amount Carrying Amount of Note Cash Interest Effective Interest $ $ Prepare the interest payment entry for Splish Brothers on December 31, 2022, and the entry on January 1, 2024. Round answer to decimal places, es. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Assume instead that Splish Brothers follows ASPE.Using (1) a financial calculator or (2) Excel function Rate, calculate the rate of interest that Splish Brothers should use to calculate its interest expense in future periods. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answer to 4 decimal places, eg, 1.2246%) 98 Rate of interest Continuing the assumption of following ASPE, prepare an effective interest amortization table for the remaining term of the note. (Round yield values to 4 decimal places, es 52.7525 and final answers to decimal places, es. 5,250) SPLISH BROTHERS INC. INTEREST PAYMENT SCHEDULE AFTER DEBT RESTRUCTURING Reduction of Carrying Amount Carrying Amount of Note Cash Interest Effective Interest $ DIE TUT ING Continuing the assumption of following ASPE, prepare the interest payment entry for Splish Brothers on December 31, 2022. and the entry on January 1, 2024. (Round answer to 0 decimal places, eg. 5,275. Credit account dities are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit December 31, 2022 NIE January 1. 2024