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Metlock Company owes $179,000 plus $16,000 of accrued interest to Bonita State Bank. The debt...

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Accounting

Metlock Company owes $179,000 plus $16,000 of accrued interest to Bonita State Bank. The debt is a 10-year, 10% note. During 2022, Metlock's business deteriorated due to a faltering regional economy. On December 31,2022, Bonita State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $348,000, accumulated depreciation of $191,400, and a fair value of $160,000.
Prepare journal entries for Metlock Company to record this debt settlement. (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.
Date
Account Titles and Explanation
Debit
Credit
Metlock Company(Debtor):
December
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