Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. metlock company owes $179,000 plus $16,000 of accr

Metlock Company owes $179,000 plus $16,000 of accrued interest to Bonita State Bank. The debt...

50.1K

Verified Solution

Question

Accounting

Metlock Company owes $179,000 plus $16,000 of accrued interest to Bonita State Bank. The debt is a 10-year, 10% note. During 2022, Metlock's business deteriorated due to a faltering regional economy. On December 31,2022, Bonita State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $348,000, accumulated depreciation of $191,400, and a fair value of $160,000.
Prepare journal entries for Metlock Company to record this debt settlement. (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.
Date
Account Titles and Explanation
Debit
Credit
Metlock Company(Debtor):
December
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students