Flint Company owes $167,000 plus $14.900 of accrued interest to Buffalo State Bank. The debt is a 10-year, 10% note. During 2020, Flint's business deteriorated due to a faltering regional economy. On December 31, 2020. Buffalo State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $322,000, accumulated depreciation of $177,100, and a fair value of $149,000 Your answer is correct Prepare journal entries for Flint Company and Buffalo State Bank to record this debt settlement. (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) No. Date Account Titles and Explanation Debit Credit Flint Company (Debtor): December Notes Payable 167000 31. 2020 Interest Payable 1 14900 Accumulated Depreciation Machinery 177100 Machinery Gain on hiposal of Machinery Gain on the structuring of Debt Buffalo State Bank Creditor December 33.2020 Machinery X Your answer is incorrect. How should Flint report the following in its 2020 income statement? 1. Gain or loss on the disposition of machine Gain or loss on restructuring of debt 2. e Textbook and Media Assume that, instead of transferring the machine. Flint decides to grant 14.000 shares of its common stock ($10 par) which has a fair value of $149.000 in full settlement of the loan obligation. If Buffalo State Bank treats Flint'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) No. Date Account Titles and Explanation Flint Company (Debtor): Debit Credit 1. December 31, 2020 Buffalo State Bank (Creditor): 2. December 31.2020 e Textbook and Media List of Accounts