So this topic is one that I've talked at great length about in the past But it keeps coming up and it's one that's very difficult to really explain to people So that's why a lot of people keep asking questions about Emacs and Vim Vim versus Emacs. What's the difference if I'm a Vim user? Why should I even want to use Emacs? What's the reason and a part of the confusion is a lot of people Compare Vim and Emacs and to be honest Vim and Emacs are not even remotely comparable Because they are so vastly different. They're just fundamentally Totally different things and I think this is part of the reason why no one's ever really been able to answer This question properly because you know when somebody asked hey, why should I the Vim user switch to Emacs? When you know and no one no one's gonna have a good answer for that because that question for one thing It's almost nonsensical. That is like me asking hey I'm a notepad plus plus user. Should I switch to steam? It's like wait what you know Like notepad plus plus is an editor steam obviously is a gaming platform It's like the question doesn't even make sense and it's almost that kind of way with Vim and Emacs They are so not the same thing, you know really truly apples to oranges, right? So when you ask hey, should I switch from Vim to Emacs? It's almost like you're asking something ridiculous like should I switch from Firefox as my browser to Thunderbird as my email client is like wait what you know, I don't under I can't even understand the question So how could I possibly give you an answer now having said all that? I am actually going to try to answer the question today at least I'm gonna give it my very best shot So let's talk about you know why people criticize Emacs as far as like the Vim users that don't want to switch to Emacs You know, what are they typically complaining about? Well, I think the biggest criticism about Emacs seems to be That Emacs is a text editor, which it's really not you know that that's why the question Hey, should I switch from Vim to Emacs? Why that question is nonsensical is because Vim is a text editor Emacs really isn't a text editor and that's where really the confusion comes from especially if you're a Vim user that has tried to use Emacs, you know, so many of you guys that are Vim users, you know You switch to Emacs thinking it's a text editor and that's what you're trying to do You're trying to just have Emacs be your text editor and it doesn't make sense to you and the reason it doesn't make sense Is because Emacs is not really a text editor. At least it's not solely a text editor Emacs Really is more akin to a complete operating system. It's really more akin to being a window manager It's really you could almost think of it as being a terminal emulator more than a text editor like the text editing Yeah, there's a text editor component to Emacs. Emacs has a text editor But Emacs is definitely not a text editor and when we're talking about Emacs being a replacement for something Emacs really isn't a replacement for your text editor like Emacs is not meant I wouldn't say Emacs is your replacement for Vim Emacs is really a replacement for your terminal emulator and the terminal emulator Workflow that so many of you guys are used to Emacs. It basically replaces all of that Let me switch over to my desktop and let's discuss, you know, your traditional terminal workflow So you open a terminal typically, right?  Maybe you do an LS you CD around to I don't know different things We'll just CD here. I'll do a LS check what is in here and then, you know, you'll open something In Vim, right?  So that's your traditional terminal based workflow And when I say emacs is more of a replacement for a terminal than a replacement for VM or whatever text editor You're using is because you know, the emacs workflow is very similar to a terminal workflow as in, you know How you get things done? So in emacs what you do is you just open emacs You don't open a terminal right and you just open emacs and you can run some commands You could do a meta X to get a list of all the thousands of various emacs commands to run Or if you got key bindings for certain things you can you know do a key binding to open whatever program or here Whatever, you know text file I want to open, you know And I can play around in this file and do whatever changes I want to do and then when I'm done You know, I can save the file. I can quit out of the file I can go somewhere else inside of emacs But you know in emacs unlike the terminal workflow where when you quit out of them You just drop back to the command line Yeah, I can go anywhere I want to in emacs So I want to I can go back to the dashboard page But if I you know wanted to go somewhere else, you know, I could just go to my list of buffers That's another thing that's a little bit different with emacs and Vium is buffers, right? So both emacs and Vium have buffers a buffer is just you know a program That's running that's open that you can come back to the difference is Vium Of course being a text editor, you know Those buffers are just text editing buffers where everything you do in emacs is a buffer So if I go to the web browser in emacs, so if I do EWW and let's go to distro.tube My website, you know, I can go here and this buffer, you know It'll be in the buffer list as long as I don't kill this buffer This buffer will always be around I go back to my emacs config if I wanted to I could you know go to My Qtile config and you'll notice, you know, the text here is different. It's not zoomed in, right? This is a normal size text because I didn't zoom in in this buffer, right? I zoomed in in this buffer That's another thing with emacs because you have these different buffers and they all have their own, you know Memory as far as what you were doing in them and as long as you never kill the buffer You could end up with dozens or in some cases even hundreds of these buffers and emacs that you can switch between and It's you know, it's a radically different kind of workflow Than your terminal-based workflow your terminal-based command line vm-based workflow because you don't have that You don't have those kinds of buffers. Yes, vm has buffers But vm has buffers within vm itself, right and vm is just a text editor Where emacs is really that whole terminal experience all of your command line programs all of your incurses programs your Terminal user interface programs your text editor everything you do Imagine if you're terminal and everything you did in it had buffers all all the programs Were part of this one unified interface and because they were all one unified interface They all use the same key bindings and like how magical would that be if every single thing you did in the terminal They all shared the same key binding. So that's essentially what emacs is It's giving you that terminal kind of workflow But instead of opening a terminal you open emacs the difference is everything you do inside of emacs is again It's unified under that one interface that one set of key bindings. Everything is configured in one config file Right now everything all of your imagine if your terminal emulator and every single one Every single one of your command line programs incurses programs terminal user interface programs They were all written in the exact same language Configured in the exact same config file That's what emacs is. So that's why the question about switching from vm to emacs If no one ever can really answer that because again, it's such a nonsensical question because again emacs is not really replacing vm Emacs is replacing your terminal think of your terminal emulator here and everything you do at the command line Then you end up in a text editor such as vm You imagine, you know, you spend a lot of time at the terminal if you're one of those people that you do so much work in the terminal You're no longer going to do that if you switch to emacs if you're using emacs the way it's supposed to be used Emacs is essentially replacing your terminal. So instead of opening a terminal to begin Whatever work you're about to do you open emacs do everything in emacs, right? You've got your text editor inside of emacs if you need to run things at a shell prompt You've got various shells when within emacs such as the e-shell which the e-shell is, you know, quite magical Let me open up e-shell here in another Window, let me move it so you my head's not in the way But the e-shell is awesome because it's got a lot of your standard command line Like gnu core util kind of applications that you can run But of course being that it's written in emacs list, I could run a Emacs list program such as the fine file command your standard emacs fine file command program I could find file my dot bash rc when I do that It's going to open the dot bash rc in an emacs editing buffer, right? And when I'm done, I could you know go back to my previous buffer I'll still be in the e-shell So again emacs it's really all about replacing your terminal workflow the question about vim and emacs They're not comparable. One's a text editor one is a much more complete Environment a complete user interface where you know, again, it would be like me asking Hey, should I switch from my text editor g edit to Qtile the window manager, right? That actually is a very good analogy, right? Because asking should I switch from g edit to qtile is essentially like asking Should I switch from vim to emacs because vim again is a text editor where emacs is Much closer to being something like a window manager than a text editor I think what really kind of muddies the water a little bit when we Ask these questions about vim and emacs and trying to compare the two trying to decide Which one is right for you as too many people focus on things like features and functionality Especially, you know missing features and missing functionality. If I switch from vim to emacs What am I going to be missing? You know, what do I need to do? What do I need to tweak and it's not about that at all as far as you know functionality and features Vim and emacs as far as their text editing capabilities. It's pretty much on par with each other So it's nothing about that. You know, that's that's not what we're talking about when we talk about vim versus emacs So it's all about the differences in workflow. That's the difference, right? That's part of the reason why so many people Criticize emacs or resist emacs. They don't really want to touch it It's because they know it's going to be a different kind of workflow and you know people resist change people fear change people resist change And I get it because I'm the same way in many aspects of my computing life You know, I don't like breaking existing workflow And you certainly have to break your workflow if you switch from that terminal based Workflow to emacs because now all of your terminal based programs that you used to run all of those terminal based Editors and file managers various incurses programs and things like that that you used to run You know, you're gonna learn all new programs because no longer you're gonna use those terminal based programs You're gonna use emacs based programs that will replace all of that stuff But here's the thing even though you're gonna have to learn some new things And yes, it's going to take a little work once you get there again that unified That you'll have under emacs for having all things be emacs because they all share the same interface the same config file Written in the same programming language, which you've learned that one programming language emacs list You can edit all of your programs. It's It's magical. I mean in a lot of ways emacs is magic It's it's the beauty of emacs. So hopefully I did a better job answering that question than Maybe I've answered it in the past. Maybe other people have answered it. I don't again It's such a again. It's a weird question because me and emacs are so totally different It's just it's a strange question and obviously that's why you get so many strange answers Now before I go, I need to thank a few special people I need to thank the producers of this episode gave James matt paul steve west archotic armor dragon commander angry george lee Matthew mythos nate erion paul peace arch and fedora realities for less red prophet rolling soul astri tienren tools devlore jentoon Ubuntu and willy these guys my highest tiered patrons over on patreon without these guys This little rant about them versus emacs as far as workflow It wouldn't have been possible the show's also brought to you by each and every one of these fine ladies and gentlemen All these names you're seeing on the screen right now. These are all my supporters over on patreon I don't have any corporate sponsors I'm sponsored by you guys the community if you like my work I want to see more videos about free and open source software including emacs subscribe to distro tube over on patreon. Peace guys


Hello everyone! Welcome to this video lecture. Myself Deepali Vardkar, working as assistant professor at WIT, Solapur. In this video lecture we will study Light Emitting Diode, LED. These are the learning outcomes. At the end of this video lecture, student will be able to examine working of LED, student will be able to draw the VA characteristic of LED and applications of LED. Before going to LED, first we will see what is the light. The light is the type of energy that can be released by an atom. Light is made up of many small particles called photons. Photons having energy and momentum but no mass. The light emitting diode that is the LED, it is an optical semiconductor device that converts electrical energy into light energy. So, whenever the voltage is applied across this device, this device emits the light. This is the real appearance of LED. The symbolic representation of LED in that there are two terminal, anode and cathode. The symbolic representation is similar to the PN junction diode. Only change that the arrow pointing outside from this diode. So, this arrow indicates the light is being emitted from this device. Now LED construction, this is the construction diagram of LED. It is surrounded by transparent hard plastic epoxy resin. Its shape is hemispherical. Due to this shape, the light is emitted uniformly in all direction. There are two metal electrodes, anode and cathode which is used for external electric connection. Anode and cathode is connected by a small wire. There is one chip which is placed in reflective cavity. This chip consists P type and N type semiconductor materials. You see how this structure of LED is made. Yes, there are three basic layers P type semiconductor, N type semiconductor and in between that active region that is the depletion region. So, the P type semiconductor consist majority charged carrier poles, N type semiconductor consist majority charged carrier electrons and the depletion region consist immobile ions. The most of the photons emitted from this depletion region. So, this region is called as a active region. LED operates in a forward biasing mode. So, in forward biasing mode, the positive terminal of external supply is connected to the P type semiconductor. Negative terminal of external DC source is connected to the N type semiconductor. So, whenever the battery connected in this way, the majority charged carrier electrons from N type will repel towards the junction. So, some of these electrons will recombine with the holes which are present in this depletion region to ions that is at the positive ions. And some of the electrons will cross the junction and they will combine with the holes which are present in a P side. Similarly, due to positive terminal, holes in a P type semiconductor will repel towards the junction. Some of holes will combines with the electrons which are present at the depletion region and some of holes will cross the junction and will recombine with the electrons which are present in a N type semiconductor. So, whenever there is a whole electron combination takes place, the photons emitted that is the light emitted. So, we will see how this light is emitted whenever the recombination takes place. So, electrons, pre-electrons present in a higher energy level that is in a conduction band and holes present in a lower energy level that is in a balanced band. So, whenever the electron whole recombination takes place, these electrons jumps from higher energy level to the lower energy level. So, the extra energy which is with this electron is released in the form of photons or in the form of light. Now, here in LED the materials which are used for this manufacturing of LED is a gallium arsenide or gallium phosphide. So, these all these materials having the very large energy gap between the conduction band and valence band. And due to that the electrons jumps at a large distance and release the higher energy whose frequency is very high and which is visible to human eye. So, whenever in this type of material whole electron combination takes place, the energy released that energy is visible to the human eye. So, light emits in case of these materials that is in LED. In case of P N junction diode that is whenever the material used like a silicon or germanium in that case the energy gap between the valence band and conduction band that energy gap is very small. So, electrons jumps at a very small distance where whenever there is a electron whole recombination takes place. So, whenever there is a electron whole recombination takes place electrons jumps at a very small distance and release energy this energy is in the form of heat. So, the photons which are emitted here or the energy which is emitted here that energy having very lower frequency and that frequency is invisible to human eye. So, in these type of materials silicon or germanium wherever there is a electron whole recombination takes place no any light emits or photons emitted here. So, this is the basic difference between P N junction diode and LED. Intensity of light from LED this intensity of light is depends upon the energy gap between the conduction band and valence band. If the large energy gap present then the intensity of light emitted by that LED is also high. So, as the energy gap between conduction band and valence band decreases the intensity of light is also decreases. Now the question what is the relation between forward current and light intensity. In the previous two slides we have seen the actually working of LED in forward biasing. So, what is the relation between forward current and light intensity. Forward biasing as the forward voltage increases there are large number of whole electron combination takes place and as the whole electron combination takes place large number of photons emitted. So, as forward voltage increases light intensity also increases. So, as the forward current increases light intensity also increases. So, there is a linear relation between forward current and light intensity or output light. Colours of LED the material which is used for constructing LED determines its colour. The wavelength or colour of the emitted light depends on the forbidden gap or energy gap of the material. So, these are the some examples of compound semiconductors which are used for the manufacturing LED. If gallium arsenide is used then that LED will emit infrared. If gallium arsenide phosphide is used then that LED will emit red light. If gallium arsenide phosphide with nitrate is used it will emit yellow. If aluminium gallium phosphide is used that LED will emit green light. If silicon carbide is used that LED will emit blue light. If gallium indium nitrate is used that LED will emit white light. So, in this way for different combinations of these semiconductors different colours of light is emitted by LED. There are number of applications of LED. Out of that the one of the most important application that is the 7 segment display. In the 7 segment display the 7 LEDs arranged in a rectangular format. Here these 7 LED are connected by two way either common cathode and common anode. In common cathode cathode terminals of this all 7 LEDs are connected together and they are connected to the ground. The segment which is to be on that particular segment or that respective LED is get connected to the positive terminal. One example suppose we have to display one here. So, respective segments for to display one that is the B and C. So, the LED which are present here B and C these LED get connected to the positive. So, this LED becomes forward biasing and other remaining LEDs becomes reverse biasing. So, this LED becomes on and emit a light. And due to this here the display that is that particular segment this segment becomes emits the light. Now in common anode the all anode terminals of this all 7 LEDs are connected together and it is connected to the positive terminal. The segment which is to be display that respective LED is get connected to the ground connection. So, that it becomes forward biasing. Suppose we have to display one then the B and C the LED which are present here these are get connected to the ground and all other LEDs remains off. So, the LEDs which are present at the B and C becomes forward bias and they emit a light. So, here one number is get displayed. So, in this way the 7 segment display is used to display number from 0 to 9. Some more applications of LED it is used in alarm system, calculators, picture phones, traffic signals, digital computers. It is also used in multimeters, microprocessors, digital watches, automatic heat lamps, camera flashes and aviation lightning. These are the references. Thank you.


Welcome from my side to this session on new technologies for wholesale central bank money settlement. My name is Ulrich Binsleil again and I'm the Director General of Market Infrastructures and Payments in the ECB. Our Directorate acts as operator overseer and catalyst and one of the basic tasks that we have is to promote the smooth operation of payment systems which is even in the statutes of the ECB, so in the EU Treaty and settlement in central bank money which is the most safe and risk-free asset and liquid asset is a cornerstone of payments and the smooth operation of payment system and that we believe holds both in the wholesale and in a certain sense also in the retail space. And as central bank we have the privilege to be able to issue central bank money and to offer it in systems in which it can be transferred for straight payments but also for example for delivery versus payment in T2S. So we offer T2S, the RTGS system T2S allowing for DVP settlement in central bank money and HIPPS as a retail payment settlement system 24-7 instantaneous settlement. We also as you know have a project on digital euro which would be electronic central bank money for retail purposes and as a digital euro project illustrates in the retail payment space we try to look into the future and you know think on how the forms of central bank money can remain fit for purpose for the future. If central bank money would not be fit for purpose any longer one day and because maybe we would stick exclusively to a technology which is no longer demanded then it would be used less and less and we may end up in a system in which central bank money is marginal and the architecture of the monetary system would become unstable. I mean some people say that retail CBDC is not needed because there are convenient electronic payment solution you know by the private sector but let's not forget private money is today a convertibility promise into central bank money so this convertibility promise into central bank money holds the monetary system together. You know we are not in the times of the gold standard any longer in which you know you can say it's a universal convertibility promise into gold everything is a convertibility promise today into central bank money that's the only anchor of the monetary system and the test of convertibility that is inherent to private money needs to be a real one a continuous one and not an abstract one that can be forgotten because central bank money would no longer be used and yeah in the case of retail CBDC again we only offer so far retail central bank money in the form of bank notes so sometimes I say half joking that this is 17th century technology some people say that retail CBDC is not needed again so then I say okay you want the central bank to stick to 17th century technology only why would the central bank be the only one who should do that so that's the debate on retail CBDC in the space of wholesale central bank money things are a bit different I mean there we have electronic money for quite a while for I don't know 50 years 80 years but there's a discussion on DLT for a few years in the field of financial markets of settlement and many believe that DLT is very promising and DLT contains a word distributed ledger and in our name there's a word central central bank so how does distributed and central go together question mark so is maybe the merit of DLT for central bank money less obvious but of course if DLT ecosystems develop in financial markets then the question arises you know what is the payment leg where does the payment leg come from and the payment leg would presumably could be integrated into a DLT ecosystem or is integrated in the form of something like stable coins but if this sort of ecosystem would over time become very large very relevant then the question reemerges how to ensure the key role of central bank money so how to bring together the word of central bank money and of DLT based financial market infrastructures at least someday in the future in this scenario that DLT indeed holds its promises and becomes more and more important so that's the context of the exercise we are doing and we are presenting today so we can go to the next slide so we are investigating concretely how central bank money settlement can take place in the context of DLT being used and there we had established a market contact group which is chaired by Horger Neuhaus who will be one of the subsequent speakers and there we had set up a dialogue to understand the market needs really in this field so there was an exercise of collecting input and yeah that was the first step understanding what markets believe is there in terms of DLT wholesale financial market infrastructures coming and secondly what is the role of central bank money and what are the preferences wishes of the market towards central bank money availability and that also this demand this also became relevant in the context of the DLT pilot regime where one could also you know ask how can we in this context offer central bank money to make experiments or tries more meaningful and yeah so if we move to the next slide so the question is of course how do you bring again together this world of central bank money and DLT and here we you know came up and that's not very creative it's just the different combinations you can imagine but with five different possibilities and the two on the left of this slide are the ones where the money leg remains on a central ledger basically and there we have two approaches one is that the central ledger is basically T2 and the other one is that it is sort of tips related hash link as it is called and it as it will be explained in much more detail in this session so here you combine basically central a central ledger with DLT and on the other side outside the central bank and you have to link the two of course in an effective manner and safe manner the other approaches on the right side of the slide all also rely on DLT for the central bank money leg and there are three possibilities in principle one is what we call interoperability that there are two basically DLT platforms one in the central bank money and the other ones in containing what the operator of the DLT allows on them and the two interact through some interoperability mechanism reserving the benefits of DLT by making this interoperability of course fully effective and that's one possibility the other one is we have an integrated approach where the central bank controls establishes the DLT platform in which not only central bank money is but also other assets so that has of course the advantage of integration but puts a lot of burden on the central bank because it takes basically both sides and on the asset side there could be a lot of diversity and complexity to manage and the last approach is basically that you put the central bank money on a DLT run by other parties and that could be permissioned blockchains or permissionless ones even in Siri so then you can see that we highlight here three out of the five approaches because we don't in the forthcoming tries and experiments offer all five we only offer the three which are highlighted so not the second and third one on the right side and we are progressing we are very concrete now in our plans so next year from May to November we will focus on those what we call interoperability type solutions the two on the left the one the upper one on the right of the previous slide and we will have experiments and tries experiments are defined as mock settlements on the cash side and test environments so while tries are actual settlement of transaction central bank money in the production environment at a limited scale however and for a limited period of time to allow to control it more closely and I think yesterday we published the expression of interest the call sorry the call for expression of interest you have to express interest and register using this link and the templates which are there and then there may be there will be a process I mean there have been eligibility criteria and of course we cannot fully anticipate the extent of demand so we will see if we can satisfy all the demands or if there is a capacity constraints clicking in somewhere then we will see how to handle this and yet just as a caveat at the end the euro systems exploratory work does not constitute a commitment by the euro system to provide such a solution in production in the future and to change the current infrastructure so there is a you know policy work to take place there is there would be decisions that would have to be taken this is really and and those let's say analysis of what could eventually become a project one day and become a reality one day it's a discussion also that to to be undertaken this discussion I would say in parallel to experiments and tries that we will do because obviously we need to understand better the technicalities the technical constraints the feasibility in parallel to understanding further what is eventually the role that we may want to implement for such solutions in the future I think that brings me to the end of my introductory remarks so thank you for your attention


Hello, my name is Ashley will be getting started here in just a couple of moments. If I see that we have a couple of participants on already. Do you guys mind just taking a quick moment to comment in the chat section. If you can hear me and if you can see the presentation. Wonderful. Thank you, Paul. Most important thing is that we are all here that you can hear me so this is great. Presentation is not working. Okay. Thank you, Kathleen Kathleen give me just a moment here. Okay, so yep so the opening slide should be up Kathleen are you seeing anything. Perfect thank you Paul. Yep. Okay, great. Wonderful. Awesome. Thank you thank you. And we'll give just a couple of minutes for the others to to join. So this will be kind of an exciting. presentation we have a lot we can get to to go over and there's a lot that we can do with giving Tuesday so I know it's a big time of year for everybody glad you made time to join us today. And I'll go over this in just a moment to but we'll definitely be taking questions at the end so any notes you have along the way you know jot down some questions and we can can go over those. We'll be a little interactive. The webinars 30 minutes scheduled for 30 minutes and that'll be questions and things but if you need to jump off early. No problems there either because we're going to have everything recorded and then because you've registered, you'll get an email with the recorded presentation so anything kind of tapped on at the end. If you're not able to say for the whole thing it's no problem. Absolutely. Great question. Just another minute for people to jump on. And this will be a great opportunity even if you've done giving Tuesday with us before, just to kind of get a good refresher of all the opportunities that are there but also just some of those regular what feels like mundane things that they can make a big difference so this will be hopefully this will be super helpful. So we'll go ahead and we'll get started here. And my name is Ashley, I am so grateful that you guys have taken some time out of your day to join us we're excited about giving Tuesday and all that we have planned just a couple of housekeeping things before we get started. We are going to be recording this webinar so I was just mentioning to Bailey that if you miss anything or if you have to duck out a little early. There's no problem there we're going to be emailing the recording and also the slide deck for the webinar so just kind of keep an eye out for that over the next couple of days. That'll be sent to all of our registrants and then also we're going to be posting this in the resource tab on the Giving Tuesday website so you know people can also go there and check out all of our previous webinars and you'll be able to access this one as well. So let's go ahead and get started. We're going to look at our six easy steps to planning your campaign and then we have a bonus step in there. But no matter where you are in the process, you still have time to create an awesome Giving Tuesday campaign. So today we're going to take a look at registration, getting your profile ready, taking advantage of your resources and scheduling your content for before, during and after the big day. So to get started we're going to take a look at a couple of Giving Tuesday basics. Giving Tuesday is a global movement and on Mighty Cause we're offering an event focused on empowering the small to mid-sized nonprofits to join the movement with us. How are we going to do this? How are we going to empower you? So through offering free resources, we're going to lavish cash and subscription prizes on you throughout the event. And we're going to provide some stellar customer support every step of the way and all you need to do is register. So a couple of important dates to take note of. Early Giving opens on November 16. All donations starting at midnight Eastern Standard Time on November 16 will count towards your Giving Tuesday total so you can start moving up those leaderboards early on. So registration is going to close November 23rd so it's open right now but it will close basically a week before Giving Tuesday so you don't want to delay getting set up and ready to go. And then of course the last big date to remember is November 30th. What we're going to do is we start at midnight Eastern Standard Time November 30th and we run all the way through midnight Pacific Standard Time November 30th. So that nobody misses out on any of those opportunities. The main opportunities are prizes, which is always an incentive not just for organizations but for donors as well. So Mighty Cause is going to be giving away $7,000 in cash, $7,000 in advanced subscriptions. We know that cash is king, but we also know that advanced subscriptions help to bring in more cash throughout the year. And this year just to help get the momentum going, we're going to be offering two prizes for early giving success. So we're going to have a $250 prize to the organization with the most unique donors during early giving. And we're also going to have another $250 prize to the organization with the most dollars raised during early giving. And throughout early giving and giving Tuesday, we certainly have the leaderboards that are going to be tracking the most dollars raised. And at the end of the event, we'll award the top first, second and third place finishers with $100 cash. And the way we do that is we have two leaderboards, just we want to keep things fair so we break up organizations into two categories. We have our small nonprofits and our large nonprofits. Each group will have its own leaderboard. And for those with an annual budget of $250,000 or less, you'll be considered a small nonprofit. And for those with over $250,000 of that annual budget, you'll be considered a large nonprofit. And we also have six power hours this year. Each are worth $500. A power hour is a fundraising sprint that awards a prize to the organization that raises either the most money or has the most unique donors in the space of an hour. And you can check out those hourly details and the other prize information in the prizes tab on the Giving Tuesday website. The prizes are not going to end there. We also have four random golden tickets throughout Giving Tuesday. And this means that every registered nonprofit has a chance to win. Small, large doesn't matter. During the hours listed on the prize page, if your organization receives a donation, you're going to be entered to win one of six, excuse me, let me say that you're going to be entered to win a free six month subscription to the Mighty Cause Advanced Plan. So there'll be four opportunities for that six month subscription. We also have a meet your match. And for this will be to be choosing two of our registered nonprofits that post and meet a matching grant of at least $1000 on their fundraising page. We'll be choosing two to win a free one year subscription to the Mighty Cause Advanced Plan. And we also have with amplifier fundraising that enters all participating nonprofits that raise over $1000 online on the Giving Tuesday. It enters you into a prize pool. And after Giving Tuesday concludes, two organizations will be randomly selected to win a free one year advanced subscription. So these subscription prizes, these will be announced by noon on December 1. So it's nothing with a leaderboard, but those are definitely something to keep in mind. So now that we have a little bit of incentive and kind of know what Giving Tuesday is all about. Let's take a look at our first step, which is to register. All you have to do is head over to givingtuesday.mightycause.com. You're going to click register below the Giving Tuesday date. It's simple. It takes only a few minutes and it definitely has a big reward. A couple of things to note. If you're already an admin for your organization, Mighty Cause will pull your information from your account. The other option is to find your organization. And for that, all you need is either your full name or the EIN of the nonprofit. Just be sure to double check that it's the correct organization. And last thing, registration has two steps. So the first is to complete and submit the registration form. And the second is to complete a four item to do list. The first is going to include a logo, a banner, the story section on your profile page, and a thank you page. And we'll take a closer look at these in just a moment. But once the form and your to-do list are complete, that's the bare minimum and you are good to go. So now we're on to step two, which is going to be getting that Mighty Cause profile page ready. So one of the essential items are already part of that registration process. The fifth item is setting up EFT or direct deposit for your disbursement. And this can actually be done through your settings tab, as opposed to right on the profile page. That will also just take a quick peek at a little bit later on. But this is the basics. It's the essentials of what you have to have done. Now that you've got your profile page, the URL is what you're going to be sharing with your supporters. So you're going to add this to your website, you're going to include it in all your correspondence, you're going to have it on all of your social media. And this is why customizing that profile page is so important, because that's where everybody's going to be headed. And you can do this by using the quick edit option at the top of your page. And this will highlight all of the different customizing that you can do. But the main things of your banner, your logo and your story, those are definitely essential. The story section is definitely something that you want to take a little bit of time on. So think through what are your donors need to know about your organization. Do you have any upcoming initiatives for 2022 have rising prices of the goods changed your budgeting needs, just all kinds of different things to think through that you want your donors to know. So maybe you also had some great breakthroughs in your community and you want to celebrate the initiatives of 2021 tell that to your donors share with them in your story section. So don't be afraid to use pictures and videos to get that message across because it's helpful when they have that visual of what your organization has been doing. What we also have between your banner and your story section. So it's towards the top of the page. We have a goal and progress bar. You can also suggest updating your goal to reflect your giving Tuesday plans, and this can be edited at any time. So if you hit that goal before giving Tuesday even arrives because you've had excellent early giving, go ahead and bump up that goal, you can adjust it at any time. Listen to adjusting the goal for giving Tuesday. You also might want to update your metrics to start calculating on November 16 or early giving, so that your donors can see all of the activity for giving Tuesday. And not only can you customize your profile page, but you can customize your checkout flow as well. And you can find the checkout flow on your dashboard under the tab checkout and then click donation form. A couple of hints. If you have just a donation amounts and descriptions that pair up with your new initiatives or any of your budget adjustments, or if you already have donation descriptions. Go ahead and take a moment just make sure that everything is up to date. Everything is flowing well. And once you have that updated in your checkout flow. If you want to practice run, or even better have a friend have a coworker take a walk through the checkout process, and they can share feedback with you so that you know is this really easy for our donors. Does it just make sense to me because I work for the nonprofit so the jargon makes sense. So just have somebody kind of have an extra pair of eyes on it. The next thing in your checkout tab on your dashboard is your thank you page. So this is essentially the donation confirmation page, but more importantly, this is your first opportunity to thank your donor for the gift. So you're going to share your gratitude, you're going to include a picture, have a video, you're going to reassure your donor that their contribution is making a difference. You can also add a call to action button at the very bottom of the page so that your donors are always being directed to the next step. So you can have them go back to your main page. You can have them go back to a Facebook page anywhere that you want them to go. You can have that call to action button there. The donation receipt is also found in the checkout tab on your dashboard. The good news is that we send out those receipts immediately after the donation is submitted. The better news is that you're able to customize a message on that receipt. So you're able to have that one last interaction with your donor immediately following their donation. Sometimes you can let them know something that's upcoming or different events that are happening. So take advantage of that and definitely be sure to preview that receipt before you finalize and leave the page. And now that your donors are taken care of we're going to take a look at the back end. So there's an icon the very last icon on your dashboard is for your settings tab. So you're going to make sure that all of your admins your new admins are there any previous admins or have been removed. And then you also have the option in your general settings to customize your URL. Just keep in mind that the URL it can only be updated once so you'll want to use that option wisely. You'll also have the option in your general settings to update your so your social sharing options. So the good news with this is, you can update this anytime. So you want to make sure that it is ready to go with giving Tuesday, and then throughout early giving and giving Tuesday itself on November 30, you're updating that so that any posts and any shares are reflecting what's really going on. So you have the option in your settings tab to double check your direct deposit EFT settings. And of course if any legal information has changed you want to take a look at those also. Lastly, if you're returning to giving Tuesday, take a quick moment and check out your donor retention rates in the overview tab on your dashboard. So this will be the top icon on your dashboard. Last year to giving Tuesday are such a great opportunity to reach out to for this year's campaign. So consider creating a specific strategy to reach out to these donors, thank them for their participation in the past, and just touch base with them about donating again this year or even considering raising their donation this year. So they've cared enough to donate in the past, definitely a great opportunity to reach out to this year as well. And something to keep in mind retention isn't limited to only giving Tuesday. So this feature is available to all of you, all year long, through mighty cause. So come on back in in February take another look, see who you need to touch base with definitely a great tool that you can use anytime. We're going to use those mighty cause resources. We have a resource tab with a nonprofit toolkit on the giving Tuesday website. The great news is that this toolkit has everything you need.  So head on over to that giving Tuesday dot com or excuse me giving Tuesday dot mighty cause dot com to find that resource tab. So with 2021 every campaign is a little bit different. Sometimes we just need a refresher or if you're new to your organization, you just need a little help moving forward so let's say that you need assistance with some email templates. We've got that in our toolkit. If you need logos or you need graphics, we have those if social media matching brands is always something that you've got somebody else to do in the past. Don't worry about it. Don't be afraid of it. Just check out the toolkit. Everything that you need is right there for you at your fingertips. Like we mentioned at the start of today, our resources tab is going to provide the webinar for today. It also provides recordings of our past webinars. So if you miss anything or if there's somebody else on your team who could benefit from the information, you can go here anytime at your convenience, select the webinar that you need, and you're good to go. Our fourth step. So we're going to start scheduling our content. This is such a helpful and an important part of being prepared. So think about your emails. We want to start getting those ready now. Use the email templates in your toolkit to help you out. Here's an example. Let's say we're going to do five emails throughout early giving and the day of go ahead and write those out now. Make sure that the content and the message of your giving Tuesday is clear. Whatever your mission is, we want to make sure that that's flowing and it's not choppy. If you have a prize money strategy because you know that there's a certain power hour that you can dominate include that in that outreach so that your donors already they know what they're doing. Be clear, be specific, but also be concise and feel free to let them know giving Tuesday is this big global event, and they can be a part of that by simply supporting you donation larger small. So don't be afraid to cater to your different audiences. So for example, if you have monthly donors address them directly with a particular email outreach, and you're going to thank them for your monthly their monthly sponsorship, but you're also going to highlight that there's a price factor for giving Tuesday. So they might provide that extra gift that they wouldn't have normally done. Another example would be if you have donors that give every year at the end of the year so they tend to give in December, or right around that last week of the year trying to squeeze in those donations, email them directly and request that they donate giving Tuesday. That way you can say hey your donation can go a little bit further there's prize opportunity, and then they have it out of the way so they're not squeezing it in at the end of the year. So a couple of things that you can do as far as those those email outreach opportunities. Also, if you have any routine correspondence so any newsletters that go out regularly or just general updates. Add in there about giving Tuesday include your giving Tuesday link and a little bit of messaging about this year's campaign. So the biggest thing, and this is the most crucial step of all that you cannot forget, test your emails before you send them and testing an email also includes proofreading an email. That's the big thing. So there's kind of this, you know, get started be excited but definitely proofread in the end. So social media is going to be your next step. So much of what we do so much of news runs through social media. And this is also such a great place to bring awareness of your organization, what you're doing, but also the opportunity to gain new donors. So many posts, and somebody else sees it and they say oh I didn't know that they did that. No they exist. Let me check them out a little bit more social media is huge for that peer to peer, getting information out there. So be sure to check out our giving Tuesday social media tips and guide. These are blog posts that you can find in that nonprofit toolkit. So definitely take a quick look at those kind of read through. See if somebody else on your team can read through get the creative juices going there. And then you're going to create those multiple posts, and the more posts and the more social media outlets you can use the better. So where you can write an advance is also good. And part of that is because things are going to get more and more crazy. As you get towards giving Tuesday. So if you can have these written up earlier, then you're not trying to squeeze it in. And you know that you've created a well thought out a well dressed social media campaign. That's going to take a lot off your plate. There's a lot of tools that are out there so don't hesitate to use them take advantage of them. So step five, get your day of plan together. So no successful sport team shows up on game day without plan, and neither should you. Giving Tuesday is a big day for nonprofits and we don't want to miss any opportunity to engage with our donors. So you're going to assign point people for a couple of different areas, one for social media, one for donor and another for don't from, excuse me, from monitoring donations. Now this could be you, this could be a set of six people, totally up to you depends on the size of your organization and all that kind of thing. But it's such an important thing to make sure everybody is covered. We want to make sure that those social media posts are going out on time. If there's a major push that you're going for for a particular prize, or if there's a matching grant that's going to be coming to a close, we want that out on social media. If donors have questions, we don't want them to have to wait too long for an answer because we want those donations to be submitted, and we want them to be taken care of. So we just want to keep an eye on those things, and it's helpful if you can bring in some volunteers or some other staff members. Along those lines, we have a couple of tips for the day, celebrating milestones. So before we even get to giving Tuesday, we've met with everybody about what we're going to be doing. Here's what you're going to do here's who you're going to monitor, but the day of it is a lot of work, but it's also a day to celebrate and to have fun. So if you're going to celebrate with your staff when you meet a big achievement you're going to celebrate on social media. It's a great day and we want to make sure that we keep it fun. We're also going to keep an eye on those matching grants and prizes. And the other thing, just a quick tip, if you're a hashtag or don't forget the hashtag and hashtag giving Tuesday. We just want to keep everything kind of flowing and keep that right in front of everybody. So the last step, step six is to plan our follow up. So this falls in line with what we chatted as far as planning out our emails and things. This is the follow up to giving Tuesday so true follow up is going to increase future gifts, but it also helps to close out the story of giving Tuesday. If you first cared enough to donate in the first place I'm giving Tuesday, then they care enough to know about your giving Tuesday success. So you're going to be the one to share it with them. And there's a lot of different ways to do this. The other thing is as follow up keeps your donors engaged for future donations, but also future volunteering, future promotion, and other crucial support that you need that is just the right donor just the right place, but we got to keep that relationship we've got to steward well, our donors. So how are we going to do that, we're going to welcome our donors are new donors with a personal touch. And this can be a great activity for a volunteer, especially for those who aren't able to make a donation they're not able to give on giving Tuesday, but they want to be a part of the mission. This is a great time for that. The other thing is, reach out to your previous donors, thank them for their continued support. Let them know what they've been able to do and how they've supported you in the past with these initiatives we've accomplished, but also this is what we have going forward. So if somebody didn't provide that large gift or a matching grant, make a big deal about it, like you see you know maybe have them there for lunch or invite them along if there's a big outing that your organization is able to host for the community. These donations are big, and we should make a big deal about them. Lastly, this is our bonus step. If you're able to work in all the bells and whistles for this year. That's okay. All you have to do is participate. That's it. You do a quick registration, and then just take a look at your mighty cause page. Make sure that everything is up to date. You know, if there's anything from last year or if there's anything real simple, make a quick update. Don't even worry about your metrics just make a quick update on your content. And then create a couple of social media posts, maybe one for the day before a couple days before a post for the day of send out an email blast to social media posts single email blast about giving Tuesday and you are good to go, and you never know that one person that don't it could become the golden ticket. So all you got to do is participate. So with that, let's go ahead to jump to any questions that you guys have. And we'll take just a moment because I know it can take some time to type things out. So go ahead and let me know and also keep in mind we do have that toolkit you can access anytime. So if there's anything that you need to go over. You can jump back on the webinar fast forward to where you need to go and check that out again. And as those questions come in I'm also going to say again I'm so grateful that you have the opportunity to join us that you mean time in your day to prepare for giving Tuesday. We are so excited to have you, and we are excited that for 2021 with everything that could be going on you've taken time to spend with us. I do have a question from Roberta. I'm glad that you enjoyed the info you are so welcome. So you did ask. Okay, why, why is there with the name field for the credit card. So one of the things that we do. Excuse me why isn't there a name field for the credit card info. It would be the name that's attached to the, the donation like a little bit kind of right up above that section. So it's the credit cards are able to process so unless there was a major discrepancy, primarily more with like the address and that kind of thing, but typically that I'm going to say the donor name typically aligns with the credit card Let me know if, if that answers that whole question. So, Janice, the toolkit, you're going to head to giving Tuesday dot mighty cause.com. And then you're going to go there's a strip, kind of right below the big picture, and I think it's three icons over is going to say resources, click on resources. And it'll be your first option, it's going to be the MPO toolkit. And I have another from Felicity, are there organizations out there willing to match your funds. If you don't provide a list, you definitely can search so that you know that's certainly an option unfortunately we don't provide a list just for the sake of keeping everything fair. There are organizations that do it, you just kind of have to hunt around, and particularly finding larger organizations or foundations that are similar in nature to the work of your nonprofit. So definitely take a, take a, take a search, I would say Google Bing, you know what have you. And Roberta real quickly I'm just going to read over. And I'm glad that that made sense. What you could. Yes, so Roberta's question is when in your in that checkout flow is there a way to have a blank field for the dollars raised so that someone knows it's not only $25 50 or 100. So what you could do right below, I should say what's kind of built in right below is where they can add their own amount. And so maybe take a look, kind of just click your donate button so that you're looking at it from fresh eyes, not in the edit view, and you'll see right below your suggested amounts that they can add their own as well, their own dollar amount. Kathy let's take a look here. So the, and Kathy's question will the organization's team monitor donations from the webpage connected to the URL that you're including in your emails your social media. The answer is yes, what you can do all of those donations that are going to be coming in, anyone who's an admin so you'll want to make sure in your settings that they're registered as an admin. You can follow that donations report, and they can follow along. It sometimes it takes a couple of minutes between when the donation is fully submitted to when it shows up on the donation report, but you'll be able to follow along that way. And as long as it's the, as long as they're on your URL, you'll be seeing those whether they come from social media or they just get your URL from an email, it'll take them all to the same place. You could do so Roberta has a question with the suggested donation amount of adding a statement such as where it has like, it's suggested donations donations 25 100 150. Can she add something or any amount you can give. If you wanted to, you could have, for example, a suggested donation amount, I'll say 150 or you could do maybe $5 might be easier. And you could then have written there, or any amount you give any amount you can give, you could have that there. And if you wanted, I don't know how many characters you're allowed. But if you wanted to you could say see below, and then they could post or type in the total that they want to get there, just below your other donation suggestions. These have been great questions so we're not going to, we're not going to rush off so if you have any questions or if you're kind of thinking over something. Feel free to to send it in and you can send it in, you know through the chat message or through the question and answer box. And you'll also have the opportunity, any questions that you have. Check in with our customer support, we are happy to help it's why we're here. So it might be that you're working on your page later this afternoon and he said okay. I can't remember what I'm supposed to do here. No problem check in with customer support. So we are happy to help you're not stranded Karen I see a hand raised. I'm not able to do the audio but if you could, are you able to type in your, your question we can definitely give a few moments for that take your time. And I do appreciate again you all be in here and really, really makes a difference we really want to give you the tools and understanding that you need of the platform so I'm glad that you're here. Yes, so Karen asked she hasn't had a chance to check out the toolkit, but she asked if that's going to walk her through the profile setup. What we can do is they do, we have a different support articles, not support articles different blogs, and within the blogs about setting up your page. There's going to be a support article, but what we can do is Karen, I have your name. And what we can do is, I'll make sure that you get a copy of our support article, walking you through how to to customize. So we can definitely take care of that for you. So it isn't the toolkit but it's within the blogs. Any other questions or any other fans raised. Totally get it Karen said it has been a crazy month so she's going to check out any support we can offer. And absolutely we also have just a whole forum our support forum of blogs, articles, support articles, blogs, webinars, ebooks, all kinds of stuff. So just in our resources, you can also find that super easy if you just go to the main mighty cause page in the upper left corner, you're going to see resources, you can click on that, and it's going to open you up to our full library. So Karen will touch face but for anybody who needs that little bit of extra support, we've got it for you in our library. I think I'm not seeing any movement, which is fine. I know you guys could be here I know I've said that so many times but we truly are so glad. Keep an eye out for the follow up email with the recording and the slide deck, you know, take a look, share with others if anybody has questions, reach out to our customer and check out that toolkit. We also have FAQs, and we also have for your donors, if they have questions that's also in the resources. So take a look at the Giving Tuesday page, giving Tuesday dot mighty cause dot com. Find everything that you need. Until next time, we will see you soon. Thank you again for stopping by. We really really appreciate it. Take care everyone.


Hello and welcome to the session in which we will discuss troubled debt restructuring. In the prior session we looked at a troubled debt restructuring and we explored the option of settling the debt. Another option when you have a troubled debt restructuring is modification of terms and this is what we will discuss in this session. When we modify the terms of the loan, how does it work? And we have two treatments when it comes to that. Sometimes the future cash flow, which is the undiscounted, is less than the carrying value and sometimes the future cash flow, which is undiscounted, is greater than the carrying value of the debt. But what is a troubled debt restructuring is when the creditor, which is the lender, the person that gave money, lent money, grant concessions to the debtor, to the person that borrowed money, not made under normal circumstances. And what I discussed in the prior session, this happened a lot to construction companies in the real estate crash of 2007, 2008. So this is what we are discussing. Now we discussed the settlement option and we said that what we can do is the creditor and the debtor, they can settle. They can close the deal by the debtor given something to the creditor. The creditor will accept and that's over. Or what we can do is the creditor can change, can modify the terms of the loan. Now how can they modify the terms of the loan? Well, there are many tools that you can do it. They can lower the interest rate on the loan. They can give the debtor more time to pay, basically extend the maturity. I'll give you, if you cannot pay this amount now, I would move it a little bit into the future. I can reduce your principal amount, forgive some of the principal amount. I can reduce or forgive any accrued interest that you have not paid. I can use any of the combination above. So when I'm modifying the loan, I have all these options including a combination of these options. Now the most difficult thing in my opinion for a student to understand when it comes to loan modification is how to compute the debtor and the creditor gain and losses. So I'm going to show you how to compute them side by side. Then we will work an example to illustrate this concept. For the debtor, for the borrower, the borrower will have a gain. How do we compute the gain for the debtor? Well, think about it. Why would, first, do you understand why the debtor could have a gain? Well, the debtor could have a gain because the borrower, it's going to forgive a certain amount of money. Well, as a result, if you tell me you don't have to pay this amount or you have to pay me 50% or 60% or 70% of this amount, then I basically have a gain because I'm settling my loan without paying it. How do I compute a gain? Here's what I'm going to do. I'm going to look at my loan. I'm going to look at my liability. What's my loan now? What's my liability now? And I'm going to compare it to my future undiscounted. So it's easy cash flow. I would look at my liability now. If my liability now is $1,000 and what I have to pay you in the future under the new terms is $800, guess what? I'm paying less than my liability. I have a gain. Otherwise, I have no gain. So you either have a gain or you don't have a gain. Those are the options. Gain or no gain. Now, for the creditor, the creditor will always have a loss. Why? Because the creditor is accepting less than the amount of their note receivable. The creditor is giving the concession. The creditor is telling the lender, pay me less. Why would they do that? Because the creditor, they want to walk away with some money. They want to cut down on their losses. Therefore, they're willing to work some sort of deal with a debtor. So they don't lose everything 100%. So they will have a loss. Otherwise, if they collect everything, they will have no gain and no loss. Well, if they're going to collect less, they will have a loss. How do we compute the loss on the lender? Please listen to me carefully. We're going to compare the expected new cash flows discounted at the old historical rate. Few things we have to be worried about. First of all, new cash flows discounted at old rate. Wow, it's a lot. So we have to see, what's the new cash flow? We have to discount the cash flow using the old percentage rate. And we're going to compare this to the current liability. What is the liability now? What's the liability now? What's the liability now? So the liability now is $1,000. And if the new discounted cash flow discounted at the old rate is 800, or let's make it 700. So guess what? I'm supposed to have basically a loan means for the creditor, that's a receivable. If I'm expecting to receive 1,000, now I'm only going to receive 700, I have a loss of 300. Don't worry, we will work an example to illustrate this concept. So let's take a look at this example. On December 31, X1, Local Bank and Adam Construction Company, which is experiencing financial difficulties due to the housing crisis, signed a debt restructuring agreement. The parties agreed to the following. One, Local Bank to forgive $600,000 of the principal balance by reducing the loan from 300,000 to 2.4 million. Two, Local Bank to extend the maturity date from December 31, X1 to December 31, X4. I'm going to give you three more years to pay. Three, Local Bank to lower the interest rate by 2% from 12, which is the old interest rate. So I'm going to charge you 10% the new interest rate. Now let's compute to see if the debtor has a gain, if so how much, and let's see how much is the creditor's loss. The debtor, the debtor will compare the old loan prior to the restructuring to the future undiscounted cash flow. So the old loan is 3 million. The future undiscounted cash flow is 2.4 million plus 10%, 240,000, and we're gonna be making four payments on this. So simply put, the debtor will be paying in the future 3,120,000. Well, the future cash flow is greater than 3 million. Therefore, we have no gain, no gain on the loan. Easy, remember this is an easy computation because we don't involve discounted cash flow. Let's compute the loss for the creditor. The creditor will look at their old receivable, which is 3 million, and they will compare it to their new discounted cash flow. Well, what is the creditor getting now? The creditor is getting one, two, three payments. The creditor is getting three payments and each payment is 240,000, 240,000, 240,000, plus they're gonna get the principal amount which is 2.4 million. Now, what would the creditor do? The creditor will discount those payments at 12% and equal to three. So this is what we're gonna do. We're gonna discount the 2.4 million at 0.7178, which is from the present value of a single amount. Discount the new payment based on the old rate, again, based on the old rate, 240,000, times 2.40183, which is the present value of an annuity table. And what we find out, the value of the new loan, basically value of the receivable of the note receivable for the creditor is 2,284,711. Notice, this is the value of the new loan, the value, the note receivable, which is the loan for the debtor. Well, the creditor had a receivable of 3 million, now they took a loss. The loss is 715,000. What they're gonna do, they're gonna book that expense for that amount and credit allowance for doubtful account for that amount. Notice they took the expense upfront, 715,289. So let's see what's gonna happen after we compute the gain or the loss.  So let's take a look at this. Remember, the creditor and under those circumstances, the creditor has no gain. Remember, the creditor has no gain and we computed this. I'm sorry, the debtor has no gain. So now what do we do now? Well, we're gonna start with the carrying amount of the note. Then we're gonna take the carrying amount of the note and first compute interest expense. How much is interest expense? How do we compute the interest expense? We're gonna be using an effective rate of 1.4276. Hold on a second. How did we come up with this 1.4276? It's not anywhere. Let me tell you how you come up with this number. You set up this formula and you would say, okay, 3 million, the old loan equal to one divided by one plus I raised to the third power times 2.4 million, which is the new loan plus one minus one over one plus I raised to the third power over I times the payment and you solve for I. Now, in an intermediate accounting course, most of the time, you will be given I. You will be given, this is called the new interest rate, the new interest rate, or you could use a financial calculator. For this exercise, I'm just gonna tell you, we're gonna be using an interest rate of 1.4276. However, I gave you the formula if you're interested in computing the formula or use a financial calculator for that matter. So 3 million times the interest rate, 1.4276%, it's gonna give us interest expense of 42,828. Now, we're gonna be making a payment of 240,000, right? Of that payment, 42,828 is interest expense and the remainder will be reduction of the principal note. So payment is split between interest expense and reduction of the note. Let's take a look at the journal entry. The interest payment would look something like this. I'm gonna reduce my note for the first payment for 197,172. I'm gonna record interest expense of 42,828 and I'm gonna credit my cash 240,000. This is the first payment. The second payment, the cash will stay the same. The second payment, my interest expense is $40,013 and I reduced the loan by 199,987. And the third payment will apply with these numbers. Then at the end, by the end of 1231, 20x4, the balance will be 2.4 million. We pay the last payment of 2.4 million and we pay off the loan. So these are the payments for the debtor. These are the payments for the debtor. Before we look at the creditor journal entries, I would like to remind you whether you are an accounting student or a CPA candidate to take a look at my website, farhatlectures.com. I don't replace your CPA review course nor replace your accounting course. I'm a useful addition. I'm gonna give you additional resources that's gonna help you succeed on your exam, succeed on the CPA exam. My motto is saving CPA exam candidate and accounting student one at a time. You have to take, give me a chance. Subscribe for one month, you like it. You feel it's helping you, you keep it. You don't, you cancel. If not for anything, take a look at my website to find out how well or not well your university doing on the CPA exam. This is a list of all my accounting courses that I have. Lectures, multiple choice through false exercises that's gonna help you prepare for your accounting career in the CPA exam. My supplementary CPA resources are aligned with your Becker, Roger, Wiley, and Glean. I also provide you access to 1,500 previously released AI CPA questions with detailed solution. Invest in yourself. If you have not connected with me on LinkedIn, please do so. Take a look at my LinkedIn recommendation like this recording, share it with other connect with me on Instagram, Facebook, Twitter, and Reddit. The creditor will start with a balance of 2,284,711. Now how did we come up with this carrying of notes, carrying of notes receivable? And this is by the way, this is the creditor so we're looking at note receivable here. So how did we come up with this one? Well remember, we had to compute the present value, the present value of the loan amount and the present value of the payment and this is the value of the note. At the beginning of this modification terms. Then what we're gonna do, we're gonna find out what's our interest revenue. Our interest revenue is the note times 12%. So it's gonna be the note times 12% and it's gonna give us 274,165. So the cash is based on the new loan. So the cash amount of 240,000, it's a loan of 2.4 million times 10%. This is how much the borrower is paying us now. And the payment is split between interest revenue and an increase in the notes receivable. So if we got paid 240,000, well, interest revenue is 274,165. The remainder, it's gonna be increase in the note, increase in the note. So we're gonna debit cash, 240,000, debit allowance, 34,165 and credit interest revenue, 274,165. Then for payment two, cash will be the same. The allowance will be 38,265 and the interest revenue will be 278,265. And obviously, this will be the entry for year three. By year three, we're gonna make the last payment and the last payment will be 2.4, the last payment that we will receive will be 2.4 million. We debit allowance 600,000 and we credit the old note of 3 million. This is the last payment. In case you are wondering, why are we debiting allowance for doubtful account? Well, by debiting the allowance, we are reducing the allowance because remember the allowance is a counter receivable. By reducing the allowance, we are increasing the notes receivable. So just in case you're wondering, why am I debiting the allowance? Now let's change the scenario a little bit for this example and change the following agreement between local bank and Adam construction. Now local banks gonna forgive 1.1 million rather than 600,000. It's gonna reduce the loan from 3 million to 1.9 million. Also, local banks gonna extend the note and it's gonna lower the interest rate by 2%. So all we did is rather than forgiving 600,000, local bank forgave 1 million, 1 million, 100,000. Again, we're gonna try to find out whether the debtor has a gain, yes or no, a gain or no gain when how much and the creditor, if they have a loss, of course the creditor will have a loss just how much is the loss. Let's look at the debtor first Adam. They have an old loan of 3 million and the new loan, what they're responsible for is 1.9 million, 1.9 million plus three interest payment of 190,000 because the loan now is 1.9 million, the new interest rate is 10. So they have to pay 2,470 in total. Do they have a gain? Yes, they do and the gain is 530,000. So Adam will happily debit notes payable 530,000. They would reduce the notes payable 530,000 and they will credit it again on troubled debt restructuring. So notice in this example we had a gain and the prior example we had no gain. Okay, now you have to be a little bit careful. You're gonna see what's gonna happen to the debtor when they journalize their entries next. Now they have a gain. The creditor, what's gonna happen to the creditor now? The creditor they have a prior, when I say loan is I mean notes receivable but since I just for simplicity I'm just comparing loan to loan but it's really a notes receivable prior to the debt restructuring. I should have changed it to notes receivable. At discount the new loan, the loan from the debtor, discount the new loan based on the old rate. So when we do the discount we'll use the old rate. Be careful. So 1.9 million times the factor 0.71178, 1,352 million. We're gonna discount the new payments based on again the old rate, 190,000 which is the new interest payment times 2.40183, 456,348. What we're gonna do, we're gonna add those two and we're gonna compare them to the three million. So let's go ahead, add them up, compare them to the three million and find out how much is our loss. So if we take 1,352,382 plus 456,348 and that's gonna give us a new notes receivable of 1,808,730. So if we take this number, the new notes receivable deducted from the three million old notes receivable we find out that we have a loss of 1 million. The loss is 1,191,270. We have a loss and this is how we did the discounting. The present value of a single amount, the present value of an annuity factor 2.401. Now what would the creditor do? The creditor will debit that expense for the amount 1,191,270 and they will credit allowance for 1,191,270. Remember the new balance now, be careful. The new carrying amount of the notes receivable is 1,808,730. We're gonna see this again once we prepare the schedule for the creditor. Now let's take a look at what the debtor will do and what the creditor will do subsequent to this. The debtor is gonna start with the carrying amount of a notes payable of 2,470. Then the debtor will start to make a payment of 190,000. How much of that payment is interest and how much of it is a reduction in the notes? None of it is interest. Zero of it is interest. Why? Why? Because the debtor now, they cannot even pay the principal, okay?  Everything that they pay in total and the creditor forgave 1.1 million. So none of their payment is interest. They cannot deduct any of it. So all the payments, it's gonna go toward reducing the carrying value. So when would that happen? Well, when the sum of the interest-counted cash flow is less than the carrying value of the old debt. Then guess what? We have no interest, okay? So we're gonna debit notes payable 190 for the 190, credit cash 190. And we're gonna reduce the note to 2,280,000. Payment two, same thing. So we're gonna be debiting cash, debiting notes payable, crediting cash. And payment three, debiting notes receivable, crediting cash. And the balance will become 1.9 million. Then we make the last payment, what we agreed on. They reduce the balance to 1.9 million, and we are done. So notice here, why did we do this? Why we did not account for any interest expense? Because we had a gain. We cannot even pay back the principal. So none of our payments should be considered interest expense. What would the creditor do? The creditor is starting with a balance of 1,800, 8,730, and it's based on the old balance was 3 million. Remember we computed the new discounted cash flow and we took a loss of 1,191,270. So the new receivable is 1,808,730. And we're gonna do the same thing. We're gonna compute the interest revenue based on the carrying amount times the old rate, which is 1,808,730 times 12%. That's gonna be the interest revenue. The cash received is based on the new loan. The debtor now is sending us 190,000 and we're gonna split it between the interest revenue and the increase in the carrying amount. And we're gonna debit cash, debit allowance. And again, when we debit allowance, when it means we are reducing allowance, it means we are increasing the note. We increase the note to 1,835,778. Now, we're gonna do this again for payment two, 190,000, compute the interest revenue, and the difference is an increase in the note. By the third payment, our note will be 1.9 million. We're receiving the last payment of cash 1.9 million, debit the allowance 1,100,000 and crediting the notes receivable of 3 million. So those are the entries. What should you do now? Well, the best way to do this is to go to my website, farhatlectures.com and work MCQs, multiple choice questions to learn more about this topic. At the end of this recording, I'm gonna remind you to take a look at my website.  Don't shortchange yourself. Your CPA exam is worth it. Your accounting career is worth it. Invest in yourself, it will pay dividend down the road. Good luck, study hard, and of course, stay safe.


Hey, this is Brett, and this 2017 Ram 2500 Megacab Short Box is stock number 13438Z. I am here at Summit Automotive in Fond du Lac, Wisconsin, your new and used heavy-duty truck and Ram headquarters, this 2017 Ram 2500 has the 6.7-liter Cummins diesel engine. It's paired up with the 6-speed 68 RFE automatic transmission. This truck has been fully-safetyed and inspected by our server shop, has a fresh oil and filter change, all the fluids have been checked and tapped off, and this truck is 100% ready to go. I'm going to go all the way around inside, underneath, start it up, and take a look under the hood to give you the most accurate representation of the vehicle as possible that I can. Brilliant black is the color, and I show all my videos in 4K. So if you have HD capabilities on your computer, tablet, smartphone, or television, I recommend turning them on now, because it is your best way to check out the quality condition options and cleanliness of the vehicle before seeing it in person. As you go down this side of the truck here, you can see the box looks really good, the cab and doors are in fantastic condition, didn't see any dents or dings, and if you like the video, you can subscribe to my YouTube channel, which is youtube.com slash Summit Auto. Click the bell notifications and you'll get updates on the videos I do each and every day here at Summit Automotive. Now this is my first video back in a week, it was on vacation, so do apologize for the break there if you're on my channel, but we're going to start it right back up now. Comes with the 20 inch painted black fuel rims. This one has Cooper Discover ST tires, these are 35x12.5 R20LTs, and you can see that those tires are very new. I would say probably 75, 80% of the tread left, maybe even a little bit more, comes with some really nice Bilstein shocks and springs, as the reservoir on there in the frame and underbody is in really nice clean condition. So I did want to point out that this one does have like a 3M covering on the front fenders and hood, so no, that's not paint oxidization, that's just the 3M tape that's on there, keeping it nice and clean from rock chips and stuff. That could come off if you didn't want it on there. Front bumper is in fantastic condition, comes with an aftermarket grille. That looks pretty good, it's got some lights in it, not sure if those work or not. But we'll turn all the lights on at the end of the video. I didn't see any dents or dings on the hood. And a passenger side front fender is in fantastic condition as well. Passenger side rim, no major scuffs or scrapes on there. And as you go down this side of this 2017 Ram 2500, take note of how clean that body is, how reflective and mirror-like that paint is. I take these HD videos so if you are far away or even if you're close by, you just cannot make the trip down, but you're still interested in purchasing the vehicle. You can see the truck, hear the truck, and of confidence in what you're looking at. Before you even get here, so when you do get here, there's absolutely no surprises and you can make a smart and informed buying decision from wherever you're at. If this video helps you make that buying decision, let your salesman know that you saw the video, that it was helpful, and that Brett sent you. Back rims in excellent shape and the back tires have just as much tread as the front tires. Once again, frame and underbody is an exceptionally clean condition. The back shocks look like they are factory. Has all the remaining factory exhaust, so it hasn't been altered in any way. And the underbodies in really nice condition. Lower rockers and cab corners all look really good. And it does come with a nice set of wheel-to-wheel and fab steps. Didn't see any dents or dings in that box. Coming around to the back, rear bumper is in great shape. Back up parking sensors, no dents or dings in there. And it does come with the full towing package, which includes the receiver hitch four pin and seven pin wiring. The tailgate is in fantastic condition as well. This one comes with a revolver roll-up tonneau cover. I didn't see any rips or tears on there. It also has a very nice spray and bed liner. The bed is in nice shape and it does come with a swing case right there. That bed liner goes on to the tailgate, which is nice. And it shuts nice and solidly. Coming around to the driver's side once again, that box. Didn't see any major dents or dings on there. And the back rim is in fantastic condition as well. No major scuffs on there. Once again, cabin doors look great. This one does have the heated fold-up tilt mirrors, built-in directional signals. They fold up like so, and they fold in like that. Inside the SLT package gives you the gray cloth interior. You get the bucket seats in the front, no rips or tears on those. Look really good. Power driver seat with lumbar, factory, all-weather floor mats. And you do get auto headlamps on there as well. Power windows, locks, and mirrors. The back seats real quick. Back seats are in excellent condition as well. No rips or tears back here. It does have the latch child safety system for any child. Car seats you may have. Power side and rear window. And those seats are in fantastic condition. No rips or tears on there. These seats fold down two different ways. So the first way is the whole backrest and seat goes down. You get a nice floor back here that goes flat all the way to the back of the cab. So if you wanted to take a nap back here, you could put some blankets back here and have a really nice big place to lay. Or if you've got pets put both sides down, they've got a nice flat place to lay as well. There's also a little storage area back here. That's your winter front. And then the other way these seats go down is just the backrest goes down. And then you have a high load floor, which is nice to put stuff on. You also get a contained area back there for storage. So mega cabs got the most room of any cab in them. You get a nice all-weather floor mat back here. Child safety locks on the back doors and the bottoms of the doors all look really, really good. We'll hop inside, check out the miles, the radio, and everything that this truck has to offer on the interior. You can see that this one has 29,236 miles. You do get the nice 7-inch LCD display on there. Digital speedometer, compass display, outside temperature, time, range to empty. And you can change all those corners to read whatever you want. It's a pretty sweet system. It comes with the leather-wrapped steering wheel, Bluetooth and information controls on the left and cruise controls on the right. It does have the six-speed automatic transmission with the 68 RFE automatic transmission with the optional tap shift there, 8.4 3C radio, AMFM, and SiriusXM radio capabilities. Has all your different apps on here. You can check out your cargo cam, you can also check out your backup cam from here. Those are working nicely. And yeah, just a lot of stuff you can do with all the different apps on there. Down here are your more tactile climate controls. Now you can do your climate controls up there as well. Turned out four-wheel drive, factory brake controller, factory stability control, tow hall mode, exhaust brake, and your rear parking sensors. You can turn those off and on. Algerian cup holders are nice and clean, and it does come with a 115-volt, 150-watt plug-in. Dual gloveboxes on the passenger side, and the passenger side seat is absolutely perfect. No rips or tears. Smells very clean inside this truck. I don't think it's ever been smoked in, and the headliner is in great shape as well. You also get map lights, power sign, rear window button, and your home link buttons for your garage door security systems and lighting systems, assistant 911 buttons up there. Now we'll start it up and take a look under the hood. Actually, I'm going to show you the VIN sticker and emission sticker real quick. Tire loading, tire and loading information sticker and the VIN sticker. There it is. Yeah. All right, we'll start it up and take a look under the hood. Starts right up. No check engine lights or anything like that. I would personally like to thank you for checking out the video today, and hopefully from this video you've been able to verify the quality condition options and of course cleanliness of this truck inside and out. There are those lights in the grille. Those work nicely. Under the hood we have a 6.7 liter Cummins diesel engine, engine base very clean, runs very smooth. Once again, this truck has been fully safe and inspected by our service shop. Has a fresh oil and filter change. All the fluids have been checked and topped off. This truck is 100% ready to go. There is the emissions sticker. I would highly recommend this truck from a quality and condition standpoint. I'd ship it anywhere and to see more pictures of this truck or one or other, 550 new and used cars, trucks, SUVs, minivans, Wranglers, half tons, three quarter tons, one tons, you name it. We got to go to that website right there, summitauto.com, full pictures and descriptions of every single vehicle from two locations. All at summitauto.com. If you'd like to check out more HD videos, you can go to youtube.com slash summit auto. Remember to like, subscribe and share on this video and all the videos that you see there. And you'll get updates on the videos I do each and every day here at summit auto. In fact, in a second, you'll see a link to subscribe to my YouTube channel in the upper left. The link to more Ram 2500 truck videos, like this one in the upper right, link to this vehicle on our website, and lower left in a link to one of our latest YouTube videos in the lower right. Click those, check us out. We're super excited to help you with this Ultra Clean 2017 Ram 2500 Megacab Short Box SLT in brilliant black crystal pearl. Thanks again for checking out the video. Remember to like, subscribe and share on the YouTube channel. I really appreciate it. Thanks again.