Marigold Company owes $225,000 plus $20,200 of accrued interest to Swifty State Bank. The debt is a 10-year, 10\% note. During 2020, Marigold's business deteriorated due to a faltering regional economy. On December 31, 2020, Swifty State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $317,000, accumulated depreciation of $174,350, and a fair value of $202,000. (a) Prepare journal entries for Marigold Company and Swifty State Bank to record this debt settlement. (If no entry is required, select "No Entry" for the account titles and enter 0 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 Marigold Company_(Debtor): 1. December Notes Payable 225000 Interest Payable 20200 Common Stock Paid-in Capital in Excess of Par - Common Stock Gain on Restructuring of Debt No Entry Swifty State Bank (Creditor): 2. December 31, 2020