Please solve the problem correctly and show work. Thank you Subject: ACC Ch : Homework
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Waterway Company owes $ plus $ of accrued interest to Wildhorse State Bank. The debt is a year, note. During Waterway's business deteriorated due to a faltering regional economy. On December Wildhorse State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $ accumulated depreciation of $ and a fair value of $
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Prepare journal entries for Waterway Company and Wildhorse State Bank to record this debt settlement. If no entry is required, select No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.
No Date Account Titles and Explanation
Debit
Credit
WaterwayCompanyDebtor:
December
Wildhorse State Bank Creditor:
December
