a) At December 31, 2018 the following balances existed on the books of Foxworth Corporation: Bonds...
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a) At December 31, 2018 the following balances existed on the books of Foxworth Corporation: Bonds Payable Interest Payable €1,840.000 50.000 If the bonds are retired on January 1, 2019, for €2,040,000. Prepare the journal entry for debt settlement Foxworth Corporation's books b) Gregory Co. owes €333,000 to Merando Inc. The debt is a 10-year, 11% note. Because Gregory Co. is in financial trouble. 1- If Merando Inc. agrees to accept a land and cancel the entire debt. The land has a book value of €150,000 and a fair value of €230,000. Prepare the journal entry on Gregory's books for debt settlement. 2- If Merando Inc. agrees to take an equity interest in Gregory Co. by accepting ordinary shares valued at €300,000 in exchange for this note. The ordinary shares have a par value of €100.000. Prepare the journal entry on Gregory's books for debt settlement a) At December 31, 2018 the following balances existed on the books of Foxworth Corporation: Bonds Payable Interest Payable €1,840.000 50.000 If the bonds are retired on January 1, 2019, for €2,040,000. Prepare the journal entry for debt settlement Foxworth Corporation's books b) Gregory Co. owes €333,000 to Merando Inc. The debt is a 10-year, 11% note. Because Gregory Co. is in financial trouble. 1- If Merando Inc. agrees to accept a land and cancel the entire debt. The land has a book value of €150,000 and a fair value of €230,000. Prepare the journal entry on Gregory's books for debt settlement. 2- If Merando Inc. agrees to take an equity interest in Gregory Co. by accepting ordinary shares valued at €300,000 in exchange for this note. The ordinary shares have a par value of €100.000. Prepare the journal entry on Gregory's books for debt settlement
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Date 20190101 Date Date Account Bonds Payable Interest Expense Loss on settlemen... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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