At January 1, 2021, Transit Developments owed First City Bank Group $730,000, under an 10% note...

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At January 1, 2021, Transit Developments owed First City Bank Group $730,000, under an 10% note with three years remaining to maturity. Due to financial difficulties, Transit was unable to pay the previous year's interest. First City Bank Group agreed to settle Transit's debt in exchange for land having a fair value of $580,000. Transit purchased the land in 2017 for $390,000. Required: Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 > Record any necessary adjustment prior to recording the exchange for debt. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet 1 2 Record the exchange of land to settle debt. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal At January 1, 2021, Transit Developments owed First City Bank Group $730,000, under an 10% note with three years remaining to maturity. Due to financial difficulties, Transit was unable to pay the previous year's interest. First City Bank Group agreed to settle Transit's debt in exchange for land having a fair value of $580,000. Transit purchased the land in 2017 for $390,000. Required: Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 > Record any necessary adjustment prior to recording the exchange for debt. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Journal entry worksheet 1 2 Record the exchange of land to settle debt. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal

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