Jayson Company has an overdue note receivable from Simpson Company for $300,000
The note was date January 1,2005.It has an annual interest rate of 9%,and
interest paid December31 of each year.Simpson paid the interest on the note
on December31,2005,but Simpson did not pay the interest due in December of2006.
The current effective rate of interest is 6%.
On January 1,2007,Jayson agrees to the following restructuring arrangement:
Reduce the principal $250,000
Forgive the accrued interest.
Reduce the interest rate to 6%
Extend the maturity date of the note to December31,2009.
a.Calculate the present value of the future cash flows of the restructured note
b.Calculate the loss that Jayson will suffer from debt restructuring.Prpate the
journal entries needed for (1)the restructuring of debt and(2)the interest
payment received on December 31,2007.
c.Calculate the gain for Simpson(if any).Prepare the journal entries needed by
Simpson for the restructuring of the debt.
我的作法:
a.$250,000*0.77218+$250,000*6%*2.5313=231,015
b.債務損失:($300,000+300,000*9%)-$231,015=$95,985
2007.1.1 Debt receivable 231,015
Loss on extinguushment of Debt 95,985
Note receivable 300,000
Interest receivable 27,000
2007.12.31 Cash 15,000
Debt receivable 5,791
Interest revenue 20,791
c.債務重整利益:($300,000+300,000*9%)-($250,000+250,000*6%*3)=$32,000
2007.1.1 Note payable 300,000
Interest payable 27,000
Debt payable 295,000
Gain on extinguishment of Debt 32,000
請各位熱心的大大幫我看一下是否有錯.....