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At January 1, 2022, Riddler Company owed Bookworm Bank $700,000, under a 6% loan with three years remaining to maturity. Because of ongoing financial troubles,
At January 1, 2022, Riddler Company owed Bookworm Bank $700,000, under a 6% loan with three years remaining to maturity. Because of ongoing financial troubles, Riddler was unable to pay the 2021 interest. Bookworm Bank agreed to accept land having a fair value of $615,000 as settlement of the debt. Riddler had purchased the land in 2017 for $635,000. Required: Prepare the journal entries to record the restructuring of the debt by Riddler Company
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
