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C
Journal entries?
Chary-83684 - 12/27/2019, 10:44 pm

So the JE for this would be??

Notes Payable(old) 900,000
Interest Payable 54,000
Notes Payable(new) 840,000
Gain on debt restructuring 114,000

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user-21492 - 01/16/2020, 5:52 pm

What about the interest payable of $240,000 (part of the 840,000)?
Shouldnt that be recorded separate??

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Leelah-18085 - 06/9/2020, 11:46 am

I think the complete J/E should be:

DR - Note Payable (OLD) $900,000
DR - Interest Payable (OLD) 54,000
CR - Note Payable (NEW) $600,000
CR - Interest Payable (NEW) 240,000
CR- Gain on debt Restructuring 114000