Zenato's Corporation is a chain of sandwich shops that has recently had difficulty meeting its long-term debt requirements.In order to avoid court proceedings, the firm's creditors agreed to the following debt restructuring in December, 20X1:
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a.A $50,000 note would be fully satisfied with a single $40,000 payment on March 1, 20X2.The note had accrued interest of $2,000 on December 1, 20X1.?
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b.A $75,000 note with accrued interest of $3,000 will be fully satisfied with $35,000 payments on December 1, 20X2 and December 1, 20X3.The original interest rate on the note was 12%.?
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c.A $40,000 note with no accrued interest will be satisfied with payments of $23,048 on December 1, 20X2 and December 1, 20X3.The old note carried a 15% interest rate.The effective rate on the restructured note is 10%.?
Required:
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Prepare the journal entries to record the restructuring and payments of the notes.?

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The Answer of Zenato's Corporation is a chain of sandwich shops that has recently had difficulty meeting its long-term debt requirements.In order to avoid court proceedings, the firm's creditors agreed to the following debt restructuring in December, 20X1:
?
a.A $50,000 note would be fully satisfied with a single $40,000 payment on March 1, 20X2.The note had accrued interest of $2,000 on December 1, 20X1.?
?
b.A $75,000 note with accrued interest of $3,000 will be fully satisfied with $35,000 payments on December 1, 20X2 and December 1, 20X3.The original interest rate on the note was 12%.?
?
c.A $40,000 note with no accrued interest will be satisfied with payments of $23,048 on December 1, 20X2 and December 1, 20X3.The old note carried a 15% interest rate.The effective rate on the restructured note is 10%.?
Required:
?
Prepare the journal entries to record the restructuring and payments of the notes.?

Zenato's Corporation Is a Chain of Sandwich Shops That Has