*E14-25B (Term Modification with Gain—Creditor’s Entries) Using the same information as in E14-22B and E14-24B above, answer the following questions related to Zettlein Bank (creditor). Instructions (a) Compute the loss Zettlein Bank will suffer under thi

*E14-25B (Term Modification with Gain—Creditor’s Entries) Using the same information as in E14-22B and E14-24B above, answer the following questions related to Zettlein Bank (creditor).

Instructions

(a) Compute the loss Zettlein Bank will suffer under this new term modification. Prepare the journal entry to record the loss on Zettlein’s books.

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

(c) Prepare the interest receipt entry for Zettlein Bank on December 31, 2015, 2016, and 2017.

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