Prepare the journal entries to record the debt settlement

Reference no: EM132823314

Question - Yenor Co. owes Spendlove Ltd. $115,000 on a note payable, plus $7,500 interest. Spendlove agrees to accept land in full settlement. The land is recorded on the books of Yenor at $55,600 and is currently worth $85,000.

Required - Prepare the journal entries to record the debt settlement on the books of Yenor.

Reference no: EM132823314

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