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ssume that, instead of transferring the machine. Windsor decides to grant 16,000 shares of its common stock ( $10 par) which as a fair value
ssume that, instead of transferring the machine. Windsor decides to grant 16,000 shares of its common stock ( $10 par) which as a fair value of $167,000 in full settlement of the loan obligation. If Sheridan State Bank treats Windsor's stock as a trading westment, prepare the entries to record the transaction for both parties. (If no entry is required, select "No Entry" for the account Etles and enter 0 for the amounts. Credit account titles are outomatically indented when the amount is entered. Do not indent manuolly. ist all debit entries before credit entries.) Windsor Company owes $190,000 plus $16,700 of accrued interest to Sheridan State Bank The debtis a 10-year, 10 note, Durias 2025, Windsor s business deteriorated due to a faltering regional cconamy On Becember 31, 2025, Shieridan State Bank agrees to accept anold machine and cancel the entire debt. The machine has a cost of $325,000, accumulated depreciation of 5178,750, and a fair value of 5167,000 (a) Your answer is correct Prepare joumal entries foe Windsor Company and Sheridan State Bank to record this debt settiement. Of no entry is required, select "No Entry" for the account titles and enter O for the arnounts Credit account titles are outomatically indented when the amount is entered. Do not indent manuaily. List all debit entries before credit entries.) Sheridan State Bank (Creditor): December 31,2025 Machinery Alowance for Doubtiol Arcounts How should Windsor report the following in its 2025 income statement? 1. Gain or loss on the disposition of machine 2. Gain or loss on restructuring of debt
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