*E14-23B (Term Modification without Gain—Creditor’s Entries) Using the same information as in E14-22B above, answer the following questions related to Zettlein Bank (creditor). Instructions (a) What interest rate should Zettlein Bank use to calculate the

*E14-23B (Term Modification without Gain—Creditor’s Entries) Using the same information as in E14-22B above, answer the following questions related to Zettlein Bank (creditor).

Instructions

(a) What interest rate should Zettlein Bank use to calculate the loss on the debt restructuring?

(b) Compute the loss that Zettlein Bank will suffer from the debt restructuring. Prepare the journal entry to record the loss.

(c) Prepare the interest receipt schedule for Zettlein Bank after the debt restructuring.

(d) Prepare the interest receipt entry for Zettlein Bank on December 31, 2016.

(e) What entry should Zettlein Bank make on January 1, 2018?