Sunland Co. owes $191,400 to Coronado Inc. The debt is a 10-year, 11% note. Because Sunland Co. is in financial trouble, Coronado Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $94,000 and a fair value of $145,500.

(a)		Prepare the journal entry on Sunlands books for debt restructure.
(b)		Prepare the journal entry on Coronados books for debt restructure.

(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.	Account Titles and Explanation	Debit	Credit
(a)	Sunland Co.'s entry:
(b)	Coronado Inc. entry:

Click if you would like to Show Work for this question:

Open Show Work