Wildhorse Co. owes $215,800 to Sheffield Inc. The debt is a 10-year, 11% note. Because Wildhorse Co. is in financial trouble, Sheffield Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $81,800 and a fair value of $147,700.

(a)		Prepare the journal entry on Wildhorses books for debt restructure.
(b)		Prepare the journal entry on Sheffields 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)	Wildhorse Co.'s entry:
(b)	Sheffield Inc. entry:

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