Allen Mursau

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12 selected videos

Troubled Debt Restructuring (Debtors Gain Vs Creditors Loss On Modifying Loan Terms)

Accounting for restructuring of debt by modification of terms of a loan (notes payable), from the prospective of both the debtor (realizing a gain) and the creditor (realizing a loss), calculating and recording both the gain and the loss, example On 12/31/20X1 Bank-B enters into a debt restructuring agreement with Corp-A, which is experiencing financial difficulties, Bank-B restructures a $1 mil Loan receivable issued at par (interest is paid to date), note restructured by: 1-Reducing principal...

Notes Payable (Loan) With Lump Sum Payment (Effective Interest Rate Method & J/E's)

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How to amortize and record the discounted notes payable with a lump sum payment (ballon payment) when it comes due using the effective interest rate method (accounting detailed), calculate the interest expense on the notes payable for the period (duration) of the note, then amortize the interest expense and recognize the expense on the income statement, following steps detailed, (1) discount the note payable (FV) back to the issue date using the interest rate on the note (using Excel PV...