Homework Answers
Answer:
| No | Accounting Titles andExplanation | Debit | Credit |
| a) | Flint Co.s | ||
| Note Payable | $181,300 | ||
| Property | $96,500 | ||
| Gain on Property Disposition ($129,600- $96,500) | $33,100 | ||
| Gain on Restructuring | $51,700 | ||
| ($181,300 - $129,600(FMV of property) | |||
| (To record for debt restructure) | |||
| (b) | Buffalo Inc. entry: | ||
| Property | $129,600 | ||
| Allowance for Doubtful Accounts (or Bad Debt Expense) | $51,700 | ||
| Note Receivable | $181,300 | ||
| (To record for debt restructure) |
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