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  3. ayayai co. owes $198,700 to pina inc. the debt is

Ayayai Co. owes $198,700 to Pina Inc. The debt is a 10-year, 11% note. Because...

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Question

Accounting

Ayayai Co. owes $198,700 to Pina Inc. The debt is a 10-year, 11% note. Because Ayayai Co. is in financial trouble, Pina Inc. agrees to accept some land and cancel the entire debt. The property has a book value of $83,200 and a fair value of $130,700.
(a) Prepare the journal entry on Ayayais books for debt restructure.
(b) Prepare the journal entry on Pinas books for debt restructure.
(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit
(a) Ayayai Co.'s entry:
(b) Pina Inc. entry:

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