Show the journal entry franco would record

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Question - Franco Corporation owes Chester National Bank (CNB) on a 10-year, 15% note in the amount of $100,000, plus $30,000 accrued interest. Because of financial difficulty, Franco has been unable to make annual interest payments for the past 2 years, and the note is due today. Accordingly, CNB restructured Franco Corporation's debt as follows:

-The $30,000 accrued interest is forgiven.

-Franco was given 3 more years to pay off the debt at 8% interest. Payments are to be made annually at year end.

Show the journal entry Franco would record for the restructuring.

Reference no: EM133126922

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