User Account

All Pages

Transit was unable to pay the previous year''s interest

Assignment Help Accounting Basics
Reference no: EM13881213

At January 1, 2013, 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 2009 for $325,000.

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

Reference no: EM13881213

Questions Cloud

What are unintended consequences of financial innovation : Relate your answers to the movie ‘Inside Job’. What are the unintended consequences of financial innovation? What are the unintended consequences of regulation? Explain how the financial crisis of 2008 occurred—who is to blame?
Included in current assets : Which of the following items is NOT included in current assets?
Unsure about the assumptions of a growth rate : The Yurdone Corporation wants to set up a private cemetry business. According to the CFO, Barry M. Deep, business is "looking up". The company is somewhat unsure about the assumptions of a growth rate of 5.7 percent its cash flows. At what constant g..
What is the geometric shape for o2 : What is the geometric shape for O2 and what how many bonds are in the structure
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 2009 for $325,000.
Calculated the four days supply of raw materials : Using the data from the Dell Computer annual report determine  how  Dell  calculated  the  four  days'  supply  of  raw  materials.  Do   you think four days'supply is a valid representation of the amountofrawmaterialDell? has on hand at the end of t..
How many grams of water will be produced : How many grams of water will be produced from the combustion of 28.06g of C2H4 in the presence of 32.00g of O2 if the reaction is 98.0%?C2H4 + 3 O2  yields  2CO2 + 2H2O
What term introduced in this chapter applies to the type : What term introduced in this chapter applies to the type of mail order deceit described in that case? What could the mail order company do to avoid a loss resulting from an event, assuming that it uses an e-commerce system?
Tootsie rolls recent income statement and balance sheet : The following items were listed on Tootsie Roll's recent income statement and balance sheet. For each item, indicate (1) the type of account (A = asset, L = liability, SE = stockholders' equity, R = revenue, E = expense) and (2) whether it is reporte..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Scott has 4800 that he wants to invest for 3 years he can

scott has 4800 that he wants to invest for 3 years. he can invest this amount at his credit union and earn 4 percent

  Janine uses the interest method of amortization bond issue

janine corporation sold some of its five-year 1000 face value 12 percent term bonds dated march 1 2011 at an effective

  Partridge co can further process product j to produce

partridge co. can further process product j to produce product d. product j is currently selling for 21 per pound and

  Amount of depreciation needs to be recaptured

The factory building was transferred to his son, John, as an inheritance at the time of wade's death and John sells it immediately after inheriting it at a gain of $30,000 based on the original cost. What amount of depreciation needs to be recaptu..

  Please describe defined-contribution plans what is an

please describe defined-contribution plans? what is an example? who bears risk? who typically contributes to these

  Klinc inc wants to sell a sufficient quantity of products

klinc inc. wants to sell a sufficient quantity of products to earn a profit of 70000. if the unit sales price is 10

  A deficiency uncovered in the audit of internal control is

a deficiency uncovered in the audit of internal control is explained by which of the following in relation to a

  Fund balance of a governmental fund

Which of the following will require a credit to Fund Balance of a governmental fund when closing entries are prepared?

  The company trade a road grader with a fair market value of

the company trade a road grader with a fair market value of 72000. for a bulldozer worth 60000. harlow receives

  Therefore the user must be able to change amounts in the

jamboree sells handmade jewelry. they have four different product lines - rings necklaces bracelets and earrings.

  Evita corporation prepares its statement of cash flows

evita corporation prepares its statement of cash flows using the indirect method. evitas statement showed net cash

  Bleeker company has the following merchandise account

bleeker company has the following merchandise account balances sales 194408 sales discounts 2178 cost of goods sold

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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