Skysong Co. owes $201,600 to Concord Inc. The debt is a 10-year, 11% note. Because...
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Skysong Co. owes $201,600 to Concord Inc. The debt is a 10-year, 11% note. Because Skysong Co. is in financial trouble, Concord Inc. agrees to accept some land and cancel the entire debt. The land has a book value of $98,500 and a fair value of $151,100.
(a)
Prepare the journal entry on Skysongs books for debt restructure.
(b)
Prepare the journal entry on Concords books for debt restructure.
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