Daniel Perkins is the sole shareholder of Pearl Inc., which is currently under protection of...
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Daniel Perkins is the sole shareholder of Pearl Inc., which is currently under protection of the U.S. bankruptcy court. As a debtor in possession, he has negotiated the following revised loan agreement with United Bank. Pearl Inc.s $665,000, 11%, 10-year note was refinanced with a $665,000, 6%, 10-year note.
a) What is the accounting nature of this transaction? b) Prepare the journal entry to record this refinancing: c)On the books of Pearl Inc d)On the books of United Bank.
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