intermediate accounting

Information

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22 23 24 25 26 27 interest rate, and extended the life of the note until December 31st, 2022. Under these On March 31st, 2020, a one-year notes payable that The Indiana Jones Soda Company had outstanding to Hillsboro Bank became due. The Indiana Jones Soda Company was cash light and struct a deal with the bank to settle the debt. In this deal, the Indiana Jones Soda Company would pay only the interest accumulated on the note over the last year and the principal balance of the note would be settled by issuing previously issued shares of the Indiana Jones Soda Company's common stock to Hillsboro Bank which the company was holding in treasury. Information about the notes payable and the soda company's common stock is as follows: nequirement vie Record the March 31st,2021 journal entry to account for The Indiana Jones Soda Company's settlement of this outstanding debt to Hillsboro Bank. Being note payable is settled by issuing Treasury stock to Hillsboro Bank and interest is paid Requirement Two If The Indiana Jones Soda Company had 25,000 shares of treasury stock on its books prior to this debt settlement, and each of these shares had the same $3.50 cost basis, what would the balance of its treasury stock-common account be after this debt settlement? \begin{tabular}{lllll|} 4 & A & B & C & D \\ \hline 1 & & Part One & \\ \hline & & & \end{tabular} On December 31st, 2020, the Indiana Jones Soda Company received $18,200 by signing a oneyear $20,000 notes payable with Gem Bank. The Indiana Jones Soda Company will amortize 2 the discount on this zero-interest note quarterly using the straight-line amortization method. 3 Requirement One Record the December 31st, 2020 journal entry to recognize The Indiana Jones Soda Company's 4 receipt of $18,200 cash in exchange for this note. 8 to record receipt of cash against note 9 Requirement Two Record the March 31st entry to account for the interest that had accrued on The Indiana Jones Soda Company zero-interest Gem Bank note and the amortization of the discount on this notes 10 payable. 15 16 17 18 19 20 21 22 23 24 25 26