A troubled debt restructring problem to be solved?

On December 31, 2014, Lakeside Inc. is in financial difficulty and cannot pay a $350,000 note (with a $35,000 accrued interest payable) to Stocking Co

On December 31, 2014, Lakeside Inc. is in financial difficulty and cannot pay a $350,000 note (with a $35,000 accrued interest payable) to Stocking Corp. Stocking agrees to forgive the accrued interest, extend the maturity date to December 31, 2016 and reduce the interest rate to 4%. The present value of the new restructured cash flows is $299,500. What entry (if any) is required to record this troubled debt restructuring?

Many thx!

or:On December 31, 2014, Lakeside Inc. is in financial difficulty and cannot pay a $350,000 note (with a $35,000 accrued interest payable) to Stocking Corp. Stocking agrees to forgive the accrued interest, extend the maturity date to December 31, 2016 and reduce the interest rate to 4%. The present value of the new restructured cash flows is $299,500. What entry (if any) is required to record this troubled debt restructuring?Many thx!

or:But try to keep bankruptcy as a last resort and consider other alternatives before making such a decision. The best one would be debt settlement. This is when you negotiate with your creditors and so reduce your debt by quite an amount.

or:Is Lakeside Inc. declare bankruptcy??

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