Reference no: EM131006566
At January 1, 2011, Brainard Industries, Inc., owed Second BancCorp $12 million under a 10% note due December 31, 2013. Interest was paid last on December 31, 2009. Brainard was experiencing severe financial difficulties and asked Second BancCorp to modify the terms of the debt agreement. After negotiation Second BancCorp agreed to:
a. Forgive the interest accrued for the year just ended.
b. Reduce the remaining two years' interest payments to $1 million each and delay the first payment until December 31, 2012.
c. Reduce the unpaid principal amount to $11 million.
Required:
Prepare the journal entries by Brainard Industries, Inc., necessitated by the restructuring of the debt at
(1) January 1, 2011;
(2) December 31, 2012; and
(3) December 31, 2013.
|
Make the demonstration most effective
: Ron Hall is a customer service representative responsible for selling time-shares to a new family resort on the Orlando Florida Universal Studios property. Assume that Ron’s buyer is a married father of two children, an executive at Proctor and Gambl..
|
|
What is the short-run quantity produced
: A firm uses 1 capital for every 5 workers to produce 1 output. The price of output is $75, the wage rate is $8, and the rental rate for capital is $2 per unit. Assume capital is not a fixed cost. What is the profit maximizing level of labor demand if..
|
|
Profit maximizing level of labor demand and capital demand
: A shop has the following production function: f(E,K) = 2E3/5 K1/7. Find the short-run profit maximizing level of labor demand if capital is fixed at 30 units. Find the long-run profit maximizing level of labor demand and capital demand.
|
|
What words from your list are still troublesome
: How did you use these words this week in your oral and written language? If you didn't use these words, explain to me why not and What words from your list are still troublesome? Why do you think that is
|
|
Prepare the journal entries by brainard industries
: Prepare the journal entries by Brainard Industries, Inc., necessitated by the restructuring of the debt at
|
|
What are causal factors and how do they affect each other
: Balancing and Reinforcing Loop- Explain each one of these loops - what are the causal factors and how do they affect each other. For the Reinforcing Loop, look for an area where there is growth. For the Balancing Loop, look for goal behavior.
|
|
Fiscal policy is in the news all the time
: Fiscal policy is in the news all the time. When the President talks about spending tax money to address the needs of our country he is really talking about fiscal policy. Many states are behind in their payments to nursing homes like the one pictured..
|
|
What happened to real GDP between years
: Assume that in year 1 an economy produces 1000 units of output and they sell for $100 a unit, on average. In year 2, the economy produces the same 1000 units of output, and sells it for $110 a unit, on average. Use year 1 prices to calculate real GDP..
|
|
Events that occur during a business cycle
: What are the names of the following events that occur during a business cycle?
|