Prepare the journal entry to record the restructuring

Assignment Help Accounting Basics
Reference no: EM131006429

At January 1, 2011, Transit Developments owed First City Bank Group $600,000, under an 11% note with three years remaining to maturity. Due to financial difficulties, Transit was unable to pay the previous year's interest.
First City Bank Group agreed to settle Transit's debt in exchange for land having a fair value of $450,000. Transit purchased the land in 2007 for $325,000.

Required:

Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments. 

Reference no: EM131006429

Questions Cloud

Essay - should a community college education be free : Write an essay on given topic. TOPIC: Should a community college education (2 year degree) be free
What is unique about perfect competition : What is unique about perfect competition as a market structure that sets it apart from the other three market structures? How does it affect the diagrams that we use to analyze firm behavior? What are the implications of the assumption of easy entry ..
Compare the straight line- ddb and macrs depreciation : The CFBT for the machine is estimated at $20,000. If a recovery period of 5 years applies, use the present-worth-of-taxes criterion, an effective tax rate of 35%, and a return of 8% per year to compare the following: straight line, DDB, and MACRS ..
Demand for each solve for the social marginal benefit curve : Suppose that James and bob live on the same street. In the winter both of them like the show on their street to be plowed. Bobs demand is given by Q=40-p and James demand ha given by Q=30-2p. Suppose that the marginal cost of plowing the snow is cons..
Prepare the journal entry to record the restructuring : Prepare the journal entry(s) to record the restructuring of the debt by Transit Developments.
Calculate the theoretical diameter of the pipe : Calculate the theoretical diameter of the pipe; the nominal pipe diameter chosen from the table; and the actual average velocity in the nominal pipe - Calculate Reynolds number for the process and hence the head loss due to friction.
Society of producing at the private market equilibrium : Suppose the demand for paper is given by Qd=360-4p and the industry marginal cost of production is given by Qs=6p.in addition the firms production imposes an external toy with an associated marginal damage of MD =2. what is the net cost to society of..
Which analyzer should be purchased : Assume that after 3 years the company will sell the selected analyzer. Using the same total tax criterion, does either analyzer have an advantage? The selling prices are expected to be $130,000 for analyzer 1 and $225,000 for analyzer 2.
Problem regarding the plowmasters : PlowMasters is a locally owned and operated snow removal business. PlowMasters provides residential and commercial snow removal for clients throughout a large metropolitan area. Typical services include drive- way and walkway snow removal, as well..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Deduct as an itemized deduction

How much of these premiums may Jean deduct asa deduction for AGI, and how much may she deduct as an itemized deduction (subject to the 7.5% floor)?

  Northwestern lumber products currently has 15000 shares of

northwestern lumber products currently has 15000 shares of stock outstanding. patricia the financial manager is

  As students sell books they bring the cash or checks to the

the soccer club decided to sell coupon books as a fund-raising activity. the books allow users to enjoy restaurants

  Larson company issued 500000 of 8 5-year bonds at 106

larson company issued 500000 of 8 5-year bonds at 106. assuming straight-line amortization and annual interest payments

  Cost advantage in the production of pencils

1. Why do you think that the Chinese apparently have a cost advantage in the production of pencils? 2. Do you think that lobbying the U.S. government to impose antidumping duties on imports of pencils from China is a good way to protect American j..

  Income statement and supporting schedule of cost

Prepare an income statement and a supporting schedule of cost of goods manufactured for the year ended December 31, 2009.

  Basis in the machine

What is the amount of Mr. Dennis' basis in the machine?

  Cotuit company has a current ratio of 40 and an acid-test

cotuit company has a current ratio of 4.0 and an acid-test ratio of 3.1. the companys current assets consist of cash

  How is the gain or loss determined

Early extinguishment of debt often produces a gain or a loss. How is the gain or loss determined?

  Make journal entries required to dispose off over or under

make journal entries required to dispose off over or under applied manufacturing overhead assuming it is allocated

  Appropriate assumptions about cost behavior

For this information, make appropriate assumptions about cost behavior and assume that direct labor costs vary directly with thenumber of units produced. How many units must the company sell inorder to earn a pretax profit of $500,000?

  Recorded the redemption of the bonds which were called at

downing co. produces and sells synthetic string for tennisrackets. the following transactions were completed by

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd