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Prepare the interest receipt schedule for windsor bank

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Reference no: EM132480848

On December 31, 2020, Windsor Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble. The bank agrees to restructure a 12%, issued at par, $4,300,000 note receivable by the following modifications:

Point 1. Reducing the principal obligation from $4,300,000 to $2,920,000.

Point 2. Extending the maturity date from December 31, 2020, to January 1, 2024.3.Reducing the interest rate from 12% to 10%.

  • Barkley pays interest at the end of each year. On January 1, 2024, Barkley Company pays $2,920,000 in cash to Windsor Bank.

Answer the following questions related to Windsor Bank (creditor).

Question 1: Prepare the interest receipt schedule for Windsor Bank after the debt restructuring. (Round answers to 0 decimal places, e.g. 38,548.)

Reference no: EM132480848

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