Question 6 a) At December 31, 2018 the following balances existed on the books of Foxworth Corporation: Bonds Payable 1,840,000 Interest Payable 50,000 If the bonds are retired on January 1, 2019, for 2,040,000. Prepare the journal entry for debt settlement Foxworth Corporation's books b) Gregory Co. owes 333,000 to Merando Inc. The debt is a 10-year, 11% note. Because Gregory Co. is in financial trouble, 1- If Merando Inc. agrees to accept a land and cancel the entire debt. The land has a book value of 150,000 and a fair value of 230,000. Prepare the journal entry on Gregory's books for debt settlement. 2- If Merando Inc. agrees to take an equity interest in Gregory Co. by accepting ordinary shares valued at 300,000 in exchange for this note. The ordinary shares have a par value of 100,000. Prepare the journal entry on Gregory's books for debt settlement