8. On January 1, 2021, C Inc., owed the bank $15 million, under a 10% note due December 31, 2022. Interest was paid last on December 31, 2019. C was experiencing severe financial difficulties and asked the bank to modify the terms of the debt agreement. The bank agreed to:
• Forgive the interest accrued for the year just ended,
• Reduce the remaining two years' interest payments to $500,000 each and delay the first payment until December 31, 2022 and make second payment on 12/31/2023.
• Reduce the principal amount to $12 million to be paid 12/31/2023.
Required: (Show the computing process and precise journal entries)
Prepare the journal entries by C Inc. necessitated by the restructuring of the debt at
(A) January 1, 2021,
(B) December 31, 2022, and
(C) December 31, 2023