At January 1, 2011, Transit Developments owed First City Bank Group $600,000, under an 11% note with
Question:
At January 1, 2011, Transit Developments owed First City Bank Group $600,000, under an 11% note with three years remaining to maturity. Due to financial difficulties, Transit was unable to pay the previous year's interest.
First City Bank Group agreed to settle Transit's debt in exchange for land having a fair value of $450,000. Transit purchased the land in 2007 for $325,000.
Required:
Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments.
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Land 450000 325000 125000 Gain on disposition ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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