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At January 1, 2021, Clayton Hoists Inc. owed Third BancCorp $19 million, under a 10%...

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Accounting

At January 1, 2021, Clayton Hoists Inc. owed Third BancCorp $19 million, under a 10% note due December 31, 2022. Interest was paid last on December 31, 2019. Clayton was experiencing severe financial difficulties and asked Third BancCorp to modify the terms of the debt agreement. After negotiation Third BancCorp agreed to do the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Forgive the interest accrued for the year just ended. Reduce the remaining two years' interest payments to $1 million each. Reduce the principal amount to $18 million. Required: 1-3. Prepare the journal entries by Third BancCorp necessitated by the restructuring of the debt at January 1, 2021, December 31, 2021 and December 31, 2022. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.).

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