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Marigold Co. owes $199,800 to Swifty Inc. The debt is a 10-year, 11% note. Because Marigold Co. is in financial trouble, Swifty Inc. agrees to

Marigold Co. owes $199,800 to Swifty Inc. The debt is a 10-year, 11% note. Because Marigold Co. is in financial trouble, Swifty Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $95,600 and a fair value of $152,500.

(a) Prepare the journal entry on Marigolds books for debt restructure.
(b) Prepare the journal entry on Swiftys books for debt restructure.

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