Prepare the journal entries by brainard industries inc

Assignment Help Accounting Basics
Reference no: EM13591844

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. (Enter your answers in dollars.

Reference no: EM13591844

Questions Cloud

Equal or unequal if the error would cause the trial balance : equal or unequal. if the error would cause the trial balance totals to be unequal indicate whether the debit or credit
The management of an amusement park is considering : the management of an amusement park is considering purchasing a new ride for 72000 that would have a useful life of 8
The foundation of a house has the following measurements : the foundation of a house has the following measurements 60 feet by 40 feet by 2 feet. if cement costs 0.03 per pound
Prepare a journal entry showing the completion of the : vista landscaping uses a job order costing system to track the costs of its landscaping projects. the company provides
Prepare the journal entries by brainard industries inc : at january 1 2011 brainard industries inc. owed second banccorp 12 million under a 10 note due december 31 2013.
A what is the composition of a liquid mixture that boils at : question at 90 oc the vapor pressure of 12-di methylbenzene is 20 kpa and that of 13-dimethylbenzeneis 18 kpa. a what
A pipe 4 inches in diameter and 6 feet 10 inches long is 3 : a pipe 4 inches in diameter and 6 feet 10 inches long is 3 quarters full of water. if 1 cubic foot of water equals
It is found that the boiling point of a binary solution of : it is found that the boiling point of a binary solution of a and b with xa 0.4217 is 96 oc. at this temperature the
The mixture is to sell for 13 per kilogram find how much : a store mixes kenyan coffee worth 12 per kilogram and turkish coffee worth 16 per kilogram. the mixture is to sell for

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the purpose of balance sheet classification

What is the purpose of balance sheet classification? How useful is the information produced from a classified balance sheet? What are some alternative classification systems that could be used?

  What tax issues are relevant to really welcome

Really Welcome, Inc., a tax exempt organization, receives 30% of its support from disqualified persons. Another disqualified person has agreed to match this support if Really Welcome will appoint him to the organization's board of directors. What ..

  Determining the financing source

A fire station that the city of plenty constructed many years ago is sold and is accounted for as an other financing source. Where should entries be made?

  What is the rebate expense and liability

During 2010, 4,000,000 packages of light bulbs are sold, and 140,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2010 financial statements dated December 31?

  The owners equity at the beginning of the period was 46000

the owners equity at the beginning of the period was 46000 at the end of the period assets were 99000 and liabilities

  Should a journal entry be made

On March 1, 2010, Freeze Company hires a new employee who will start to work on March 6. The employee will be paid on the last day of each month. Should a journal entry be made on March 6? Why or why not?

  What should your company record as a gain from the sale

assume your company just sold a mainframe computer. The computer originally cost $300,000 and had accumulated depreciation of $100,000 on the date of the sale. Instead of the buyer paying cash, she gave you a $400,000 noninterest-bearing note due ..

  Determining basis in the stock

Henry transfers property with an adjusted basis of $95,000 and a FMV of $100,000 to a newly formed corporation in a Sec. 351 exchange. Henry receives stock with a FMV of $85,000 and a short-term note with a $15,000 FMV. Henry's basis in the stock ..

  Tower of pizza makes a unique double stacked pizza the

tower of pizza makes a unique double stacked pizza. the companys annual fixed expenses are 54000. the sales price of

  Tiaras income tax basis in the shares was 100 per share

general inertia corporation made a pro rata distribution of 50000 to tiara inc. in partial liquidation of the company

  Cash investments made by stockholders in exchange for

cash investments made by stockholders in exchange for capital stock in a business are reported on the cash flows in

  Customers perspective and managements perspective

Which approach do you favor from (1) a customer's perspective and (2) management's perspective? Explain.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd