Question: Exercise 14-26 Your answer is partially correct. Try again. Stellar Co. owes $216,600 to Pearl Inc. The debt is a 10-year, 11% note. Because Stellar

Exercise 14-26 Your answer is partially correct. Try again. Stellar Co. owes $216,600 to Pearl Inc. The debt is a 10-year, 11% note. Because Stellar Co. is in financial trouble, Pearl Inc. agrees to accept some land and cancel the entire debt. The land has a book value of $93,900 and a fair value of $135,100. (a) Prepare the journal entry on Stellar's books for debt restructure (b) Prepare the journal entry on Pearl's books for debt restructure. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (a) Stellar Co.'s entry: Notes Payable Land T 93900 Gain on Restructuring of Debt fi Debt Investments (b) Pearl Inc. entry: Land 13 Loss on Disposal of Land Notes Receivable Click if you would like to show Work for this question: Open Show Work

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