On March 3 1 st , 2 0 2 2 a one year notes payable that Payne
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Question:
On March st a one year notes payable that Payne Windows had outstanding to hilsboro Bank became due. Payne Windows was cash light at the time and struck a deal with the bank to settle the debt. In this deal, Payne Windows gae Hilsboro Bank shares of common stock from its own treasury to settle the principal obligation of the debt plus one year past due interest. information about the notes payable and payne windows common stock treasury is as follows
Principal obligation of the note $
Interest rate on the note
Number of years note was outstanding
Shares of treasury stock issued $
Market price of shares on MArch st $
Cost basis of treasury shares $
Requirement One:
Record the March st journal entry to account for the compan's settlement of this outstanding debt to hilsboro bank.
Requirement Two:
Payne Windows had shares of treasury stock on its books prior to this debt settlement, and each of these shares had the same $ cost basis, what would the balance of its treasury stock common account be after this debt settlement?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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