Strickland Company owes $200,000 plus $18,000 of accrued interest to Moran State Bank. The debt is a
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Instructions
a. Prepare journal entries for Strickland Company to record this debt settlement.
b. How should Strickland report the gain or loss on the disposition of machine and on restructuring of debt in its 2019 income statement?
c. Assume that, instead of transferring the machine, Strickland decides to grant 15,000 of its ordinary shares ($10 par), which have a fair value of $180,000 in full settlement of the loan obligation. Prepare the entries to record the transaction.
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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