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Sheridan Inc. issued a dabenturz bond to Karamoutz Bank to finance new tachnology it developed. The dabenture was for $$560,000,$

issuad at face valuz, with a $10-$yaar tarm and interast payable at $10\%.$ Sharidan's new tachnology proved not to be technically feasibla

and causad it to po into financial distress. The dabantura is due today, Decamber $31,2023,$ and Sharidan does not have tha funds to

rapey the debenture or the intarest. As a rasult, Karamoutz azraed to extend the debenture due date for five more years and reduce

the principal amount to $$348,000$ in exchange for receiving $23,200$ common sharas of Sharidan, currantly trading at $$5$ per shara.

Interast will still be payable at $10\%$ and will continue to be due annually on Dacamber $31$ of each year. The currant markat rata is $12\%.$

Sheridan praparas financial statements in accordance with IFRS.

click here to vizw the factor table PRESENT VALUE OF $1.$

click hers to vizw the factor table PRESENT VALUE OF AN ANNUITY OF $1$

Using $(1)$ factor tables, $(2)$ a financial calculator, or $(3)$ Excel function PV$,$ prepare all the necessary journal antries on the books of

Sheridan from the time of restructuring the debenture through maturity. $($Round present value factor calculations to $5$ decimal places, e$.$g$.$

$1\mathrm{.}25124$ and final answer to $0$ decimal places eg $58,971.$ Credit account titles are outomatically indented when the amount is entered. Do not

indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit entries before credit

entries.$)$

Date

Account Titles and Explanation

Debit

Credit

$($To racord paymant of intarest$).$

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