Your answer is partially correct. Daniel Perkins is the sole shareholder of Splish Inc., which is currently under protection of the US bankruptcy court. As a debtor in possession, he has negotiated the following revised loan agreement with United Bank. Splish Inc's $722.000, 12% 12-year note was refinanced with a $722,000, 6%, 12-year note. (a) What is the accounting nature of this transaction? Troubled debt restructuring (b) Prepare the journal entry to record this refinancing: (Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answers to O decimal places eg. 58,971. If no entry is required, select "No Entry" for the account titles and enter O for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually) (1) On the books of Splish Inc. (2) On the books of United Bank. No. Account Titles and Explanation 1. 2. Debit Credit Accumulated Depreciation-Equipment Accumulated Depreciation-Machinery Accumulated Depreciation-Plant and Equipment Allowance for Doubtful Accounts Bad Debt Expense Bond Issue Expense Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Debt Investments Depreciation Expense Discount on Bonds Payable Discount on Notes Payable Discount on Notes Receivable Equipment Equity Investments Gain on Disposal of Machinery Gain on Disposal of Land Gain on Disposal of Plant Assets Gain on Redemption of Bonds Gain on Restructuring of Debt Gain on Sale of Machinery Interest Expense Interest Payable Interest Receivable. Interest Revenue Inventory Land Loss on Disposal of Equipment Loss on Disposal of Land Loss on Redemption of Bonds Machinery Mortgage Payable No Entry Notes Payable Notes Receivable Paid-in Capital in Excess of Par-Common Stock Paid-in Capital in Excess of Par-Preferred Stock Premium on Bonds Payable Retained Earnings Salaries and Wages Expense Sales Sales Revenue Unamortized Bond Issue Costs Unearned Revenue Unearned Sales Revenue Unrealized Holding Gain or Loss - Equity Unrealized Holding Gain or Loss-Income