Make journal entries to record the restructuring on December

Assignment Help Accounting Basics
Reference no: EM132559926

Question - Jeonju Co., after having experienced financial difficulties in 2019, negotiated with two major creditors and arrived at an agreement to restructure its debts on December 31, 2019. The two creditors were Lee and Kim. Lee was owed principal of $325,000 and interest of $40,000 but agreed to accept equipment worth $70,000 and notes receivable from Jeonju Co.'s customers worth $275,000. The equipment had an original cost of $95,000 and accumulated depreciation of $36,000. Kim was owed $650,000 and agreed to extend the terms and to accept immediate payment of $200,000 and the remaining agreed-upon balance of $486,697 to be paid on December 31, 2021. All payments were made according to schedule.

Required - Make Jeonju Co.'s journal entries to record the restructuring on December 31, 2019, and the entries necessary to make the adjustments and record payment on December 31, 2020, and 2021.

Reference no: EM132559926

Questions Cloud

Tarises on imports of foreign goods : Briefly explain whether you agree with the student's reasoning
How should tesla marketing strategy differ for the semi : The Tesla Semi is geared toward a very different audience than the rest of Tesla's lineup. How should Tesla's marketing strategy differ for the Semi?
Aggregate demand and supply diagram : Use an aggregate demand and supply diagram to illustrate and explain how each of the following will affect the equilibrium price
Discuss negotiation in the context of BATNA-WATNA : Discuss negotiation in the context of BATNA, WATNA, the bargaining zone, and the reservation point.
Make journal entries to record the restructuring on December : Make Jeonju Co.'s journal entries to record the restructuring on December 31, 2019, and the entries necessary to make the adjustments
Discuss some of the main actors in the microenvironment : Consider what marketing research the organization has done or can conduct in the future. Include at least one specific primary data collection
Describe medical care issues involved in situation : Describe the medical care issues involved in this situation. Describe the ethical issues that may arise based on your decision as the administrator.
What are the equilibrium values of c : What are the values of private saving, public saving, and national saving? If government spending rises to 1000, what are the new equilibrium?
Discuss the treatment modalities of neoplasm : Discuss the treatment modalities of neoplasm 1.Surgical 2.chemotherapy

Reviews

Write a Review

Accounting Basics Questions & Answers

  Ethical considerations of costing methods

Please devote at least 1 paragraph to the ethical considerations of costing methods.

  The informaton of limited liability companies

Download a copy of the legislation with which your state began to allow the informaton of limited liability companies. What type of business activities can an LLC conduct in your state?

  Life insurance policy from the nickel life insurance

Your client, Ned Bovine, purchased a $2 million life insurance policy from the Nickel Life InsuranceCo. (NLIC) of Dime Box, Texas. Ned's wife is the beneficiary of the policy. The policy was purchased10 years ago when Nickel Life Insurance was a m..

  What the gross profit from the sales is

Manufactures merchandise in the U.S. that it then sells in Canada. Title passes in Canada. What The gross profit from these sales is?

  What is the amount of total liabilities at the end of year

At the beginning of the year, Hernandez Company had total assets of $781,587 and total liabilities of $503,090. Answer the following (((independent questions.)))))

  Bosques corporation has in stock 35800 kilograms of

bosques corporation has in stock 35800 kilograms of material l that it bought five years ago for 5.55 per kilogram.

  Were the bonds listed at a discount or premium

On February 10, 2014, finance. yahoo. com bonds quoted a bond price of 140.2 for Ford Motor Company's 9.3 percent bonds maturing on March 1, 2030. Were the bonds listed at a discount or premium? Does this mean the market interest rate for comparable ..

  The company has separate insurance policies

Unearned Sales Revenue $22,800: The company began selling magazine subscriptions on October 1, 2012, on an annual basis. The selling price of a subscription is $24. A review of subscription contracts reveals the following.

  Determine the balance of pension plan assets at fair value

The following information relates to Hatami Company's defined benefit pension plan during the current reporting year: Required: Determine the balance of pension plan assets at fair value on December 31.

  How much is the taxable income of his son

Bruno died and his wife and son went to the insurance company to collect the proceeds of the policy. How much is the taxable income of his son

  How much revenue Cigaro recognize for the month of April

In January, Cigaro Corp. agrees to a contract to sell 14,000 sports caps for $140,000 to Dilly, Inc. How much revenue will Cigaro recognize for month of April

  Power and prestige of the audit profession

Do you believe the legislation enhances the power and prestige of the audit profession, or alternatively, does it decrease both the power and prestige of the profession? Explain.

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