ACC 302, easy. Q7

Marigold Co. owes $199,800 to Swifty Inc. The debt is a 10-year, 11% note. Because Marigold Co. is in financial trouble, Swifty Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $95,600 and a fair value of $152,500. a. Prepare the journal entry on Marigold's books for debt restructure. b. Prepare the journal entry on Swifty's books for debt restructure. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit occount titles are outomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) b. Swifty Inc, entry