Reference no: EM131001371
Rothschild Chair Company, Inc., was indebted to First Lincoln Bank under a $20 million, 10% unsecured note. The note was signed January 1, 2005, and was due December 31, 2014. Annual interest was last paid on December 31, 2009. At January 1, 2011, 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 First Lincoln Bank to record the restructuring and any remaining transactions, for current and future years, 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.
|
Write a program to play the rock-paper-scissors game
: Game Program Write a program to play the rock-paper-scissors game. Two users take turns entering R, P, or S. The program then announces the winner, based on the rule that paper covers rock, rock breaks scissors, scissors cut paper.
|
|
What is the amount of accounts receivable due from customers
: What is the amount of accounts receivable due from customers at the end of 2009 and 2008?
|
|
What would be the net amount of accounts receivable
: For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2011 balance sheet?
|
|
What is the amount of symantecs gross sales
: Assuming that all sales are made on a credit basis, what is the amount of cash Symantec collected from customers during the 2009 fiscal year?
|
|
Reduce the remaining four interest payments
: 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.
|
|
Prepare the journal entries that would be recorded on july
: Assuming that 80% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank.
|
|
Define the random variables
: Take N = 3. As remarked above, we need only consider a two-period model. Define the random variables. Show that it is not necessarily true that v(k, n) = v(k, m)Ekv(m, n) if m ≠ k + 1.
|
|
Determine the probability of running
: (i) Determine the number of days each probe is expected to last. (ii) If the reactor operator wishes to run a product campaign that lasts continuously for 20 days, determine the probability of running this campaign without having to replace the..
|
|
Determining the residence time distribution and the pdf
: (i) Plot the pdf f (x) for the single large CSTR's residence time distribution and the pdf f (y) for the ensemble of ?ve identical small reactors in series. Determine the mean residence time in each case. (ii) Compute P (Y ≤ 5) and compare wit..
|