Reference no: EM131006844
At January 1, 2011, Rothschild Chair Company, Inc., was indebted to First Lincoln Bank under a $20 million, 10% unsecured note. The note was signed January 1, 2008, and was due December 31, 2014. Annual interest was last paid on December 31, 2009. Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement.
Required:
Prepare all journal entries by Rothschild Chair Company, Inc., to record the restructuring and any remaining transactions relating to the debt under each of the independent circumstances below:
1. First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $16 million but carried on Rothschild Chair Company's books at $13 million.
2. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b) reduce the remaining four interest payments to $1 million each, and (c) reduce the principal to $15 million.
3. First Lincoln Bank agreed to defer all payments (including accrued interest) until the maturity date and accept $27,775,000 at that time in settlement of the debt.
|
Should the court pierce the corporate veil
: Juice sued Pat Johnson for the unpaid amount - about $35,000. Pat argued that he was not personally liable for corporate debt. What are the factors the court will consider in deciding whether or not to pierce the corporate veil? Should the court p..
|
|
Determine the expected number of acceptances
: What is the probability that among the next 18 applicants At least 6 will be accepted - Determine the expected number of acceptances.
|
|
Explain the requirements of the duty of care
: Explain the requirements of the Duty of Care, the Duty of Loyalty, and the Business Judgment rule. Who or what are these duties designed to protect? Are these duties necessary? Why or why not? Use this week's lecture as a basis for your post.
|
|
Value of the amusement park based on its assets
: Thus, as would be expected in efficient markets, the value of the amusement park based on its assets (in effect, its land) is equal to the value of the amusement park as a going concern (using DCF method). Do you agree?
|
|
Prepare all journal entries by rothschild chair company
: First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b) reduce the remaining four interest payments to $1 million each, and (c) reduce the principal to $15 million.
|
|
Parks maintenance foreperson
: A woman was hired as parks maintenance foreperson. She was the first female to occupy this position. Other employees questioned her com- petence and decisions on a daily basis, were insubordinate, called her names such as "bitch," spread rumors ab..
|
|
Find all of points at which graph has vertical tangent line
: Use your result from part (b) to determine all of the points at which the graph of x = y5 - 5y3 + 4y has a vertical tangent line. Use implicit differentiation to find a formula for dy/dx.
|
|
List the parent strand of dna
: List the parent strand of DNA you used in activity 12.2 and then list its complimentary mRNA strand - List the sequence of codons you used in activity 12.3 and for each, list its corresponding amino acid.
|
|
What would be the impact of following up
: Do you perceive an ethical dilemma? What would be the impact of following up on Claude's plan? Who would benefit? Who would be injured?
|