I need the journal entry for the other one. Please provide complete answer

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I need the journal entry for the other one. Please provide
complete answer

I Need The Journal Entry For The Other One Please Provide Complete Answer 1 (16.04 KiB) Viewed 13 times

Marin Inc. owes Sweet Acacia Bank $241,000 plus $15,100 of accrued interest. The debt is a 10-year, 10% note. During 2020, Marin's business declined due to a slowing regional economy. On December 31, 2020, the bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $472,000, accumulated depreciation of $268,000, and a fair value of $221,000. The bank plans to dispose of the machine at a cost of $7,200. Both Marin and Sweet Acacia Bank prepare financial statements in accordance with IFRS 9.
Your answer is correct. Prepare the journal entries for Marin Inc. and Sweet Acacia Bank to record this debt settlement. Assume Sweet Acacia had previously recognized an allowance for doubtful accounts for the impairment prior to the settlement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Marin Inc. Dec. 31, Notes Payable 2020 Interest Payable Accumulated Depreciation - Machinery Machinery Gain on Disposal of Machinery Gain on Restructuring of Debt Sweet Acacia Bank Machinery Allowance for Doubtful Accounts Notes Receivable Interest Receivable Dec. 31, 2020 241000 15100 www. 268000 221000 35100 472000 17000 35100 ** 241000 15100
Assume that, instead of transferring the machine, Marin decides to grant the bank 15,000 of its common shares, which have a fair value of $232,000. This is in full settlement of the loan obligation. Assuming that Sweet Acacia Bank treats Marin's shares as FV- NI investments, prepare the entries to record the transaction for both parties. Assume Sweet Acacia had previously recognized an allowance for doubtful accounts for the impairment prior to the settlement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Marin Inc. Dec. 31, 2020 Dec. 31, 2020 Sweet Acacia Bank 1000