At January 1, 2016, Transit Developments owed First City Bank Group $720,000, under an 9% 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 $570,000. Transit purchased the land in 2012 for $385,000. Required: Prepare the journal entry (s) to record the restructuring of the debt by Transit Developments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet 12 Record the any necessary adjustment prior to recording the exchange for debt. General Journal Debit Credit Event *Enter debits before credits done clear entry record entry