Question
Worcester Co. owes $199,800 to Sims Inc. The debt is a 10-year, 11% note. Because Worcester Co. is in financial trouble, Sims Inc. agrees to
Worcester Co. owes $199,800 to Sims Inc. The debt is a 10-year, 11% note. Because Worcester Co. is in financial trouble, Sims Inc. agrees to accept some land and cancel the entire debt. The land has a book value of $90,000 and a fair value of $140,000. Prepare the journal entry on Worcester's books for debt settlement.
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BondsA Concise Guide For Investors
Authors: M. Choudhry
2nd Edition
0230006493, 9780230006492
