Chapter 14, Problem 14.31BE

Short-Term Debt Expected to Be Refinanced, IFRS. Using the information provided m BE14-30, prepare the journal entry required on December 31, 2017, to reflect the refinancing agreement under IFRS.

BE14-30. Short-Term Debt Expected to Be Refinanced, U.S. GAAP. Saxon Woods, Inc. has a fiscal year-end of December 31, 2017. The company reported $124,500 in short-term notes payable due on April 1, 2018. on its year-end balance sheet Saxon Woods extended the due date for this debt to January 31, 2019, during the post-balance sheet period. The bank agreed to extend the debt term for $100,000 of the total amount of the loan; $24,500 is due on its original due date. Prepare the journal entry required on December 31, 2017 to reflect the refinancing agreement under U.S. GAAP.