entries for December 31,2020

Shamrock Company owes $221,000 plus $20,100 of accrued interest to Bridgeport State Bank. The debt is a 10-year, 10% note. During 2020, Shamrock's business deteriorated due to a faltering regional economy. On December 31, 2020, Bridgeport State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $402,000, accumulated depreciation of $221.100, and a fair value of $201,000. Assume that, instead of transferring the machine, Shamrock decides to grant 14.000 shares of its common stock ($10 par) which has a fair value of $201.000 in full settlement of the loan obligationelf Bridgeport State Bank treats Shamrock's stock as a trading investment, prepare the entries to record the transaction for both parties, (if no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Credit No. Date Account Titles and Explanation Shamrock Company (Debtor); 1. December 31, 2020 Bridgeport State Bank (Creditor); 2. December 31, 2020