Cat's Eye, Inc. owes Brusters, Inc. $45,000 on a note payable, plus $3,250 interest. Bruster's agrees to accept 1,000 shares of Cat's Eye common stock in full settlement of the debt. The stock has a par value of $5 per share and a current market value of $45 a share. Required: Record this debt restructuring on the books of Cat's Eye

Answer rating: 100% (QA)

To record the debt restructuring on the books of Cats Eye we need to account for the settlement of t... View the full answer