Question
On 31 July 2020 ABC company owes $333,000 to ZXY Company if the long term notes ( 10 years , i= 11% ) . ZXY
On 31 July 2020 ABC company owes $333,000 to ZXY Company if the long term notes ( 10 years , i= 11% ). ZXY company agrees to accept a machine to settle the debt as ABC company is having financial problems. The carrying amount of the machine is $150,000 and the fair value of the machine is $230,000.
Required:
Prepare the necessary journal entry by ABC company to record the settlement of the debt.
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
