Forgive past-due interest


Bonds are issued 1/2/2008, $10,000,000, 10 year, 10 and have an unamortized premium of $210,000. January 1,2013 bondholders agree to forgive past-due interest and reduce the interest rate from 10% to 5%. How do I journalize this.

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Accounting Basics: Forgive past-due interest
Reference No:- TGS052806

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