Question
At January 1, 2018, Transit Developments owed First City Bank Group $610,000, under an 8% note with three years remaining to maturity. Due to financial
At January 1, 2018, Transit Developments owed First City Bank Group $610,000, under an 8% 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 Transits debt in exchange for land having a fair value of $460,000. Transit purchased the land in 2014 for $330,000. 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.)
10.
Journal entry worksheet Record the any necessary adjustment prior to recording the exchange for debt. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the exchange of land to settle debt. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journalStep by Step Solution
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