At January 1, 2024, NCI Industries, Incorporated was indebted to First Federal Bank under a $246,000, 10% unsecured note. . The note was signed January 1, 2017, and was due December 31, 2025. Annual interest was last paid on December 31, 2022. • NCI was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. • First Federal agreed to reduce last year's interest and the remaining two years' interest payments to $11,844 each and delay all payments until December 31, 2025, the maturity date. Required: Prepare the journal entries by NCI Industries, Incorporated, necessitated by the restructuring of the debt at: (1) January 1, 2024; (2) December 31, 2024; and (3) December 31, 2025. Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of S1) View transaction list View journal entry worksheet No Date 1 January 01, 2024 No joumal entry required General Journal Credit Ⓒ

At January 1, 2024, NCI Industries, Incorporated was indebted to First Federal Bank under a $246,000, 10% unsecured note. . The note was signed January 1, 2017, and was due December 31, 2025. Annual interest was last paid on December 31, 2022. • NCI was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. • First Federal agreed to reduce last year's interest and the remaining two years' interest payments to $11,844 each and delay all payments until December 31, 2025, the maturity date. Required: Prepare the journal entries by NCI Industries, Incorporated, necessitated by the restructuring of the debt at: (1) January 1, 2024; (2) December 31, 2024; and (3) December 31, 2025. Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of S1) View transaction list View journal entry worksheet No Date 1 January 01, 2024 No joumal entry required General Journal Credit Ⓒ

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

At January 1, 2024, NCI Industries, Incorporated was indebted to First Federal Bank under a $246,000, 10% unsecured note.
. The note was signed January 1, 2017, and was due December 31, 2025.
Annual interest was last paid on December 31, 2022.
• NCI was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement.
• First Federal agreed to reduce last year's interest and the remaining two years' interest payments to $11,844 each and delay all
payments until December 31, 2025, the maturity date.
Required:
Prepare the journal entries by NCI Industries, Incorporated, necessitated by the restructuring of the debt at (1) January 1, 2024; (2)
December 31, 2024; and (3) December 31, 2025.
Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar. If no entry is required for a
transaction/event, select "No journal entry required in the first account field. Use tables, Excel, or a financial calculator. (FV of $1.
PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)
View transaction list View journal entry worksheet
'
No
1
4
Date
January 01, 2024 No joumal entry required
December 31, Interest expense
2024
Interest payable
December 31,
2025
Interest expense
Interest payable
December 31, Notes payable
2025
Interest payable
Cash
General Journal
Debit
Credit

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