On December 31, 2025, Short Co. is in financial difficulty a…
On December 31, 2025, Short Co. is in financial difficulty and cannot pay a note due that day. It is a $2,000,000 note with $50,000 accrued interest payable to Bryan, Inc. Bryan agrees to forgive the accrued interest, reduce the principal balance due to $1,750,000, extend the maturity date to December 31, 2027, and reduce the interest rate from 6% to 5%. Instructions: Prepare entries for the following: The restructure on Short’s books on December 31, 2025. The restructure on Bryan’s books on December 31, 2025. Short’s payment of interest one year later on December 31, 2026. Bryan’s receipt of interest one year later on December 31, 2026.
Read DetailsFormula Sheet (Note: not all formulas are needed for all tes…
Formula Sheet (Note: not all formulas are needed for all tests, but this sheet is provided for all tests.) Width = (Max – Min) / Number of classes Midpoint = (Upper limit + Lower Limit) / 2 Empirical Rule: 68% within 1 St. deviation; 95% within 2 St. Deviation; 99.7% within 3 St. dev. Usual values=
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