At December 31, 2020, Oscar Ltd. owes Wilde Corp. for a $ 300,000 note payable, plus accrued
Fantastic news! We've Found the answer you've been seeking!
Question:
At December 31, 2020, Oscar Ltd. owes Wilde Corp. for a $ 300,000 note payable, plus accrued interest of $ 27,000. Oscar is now in financial difficulty and cannot repay Wilde. To settle the debt, Wilde agrees to accept from Oscar equipment with a fair value of $ 285,000, an original cost of $ 420,000, and accumulated depreciation to date of $ 98,000.
Instructions
a) Prepare the journal entry on Oscar's books to record the settlement of the debt.
b) Prepare the journal entry on Wilde's books to record the settlement of the receivable.
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas
Posted Date: