Cramer, Inc.owes Billings, Inc.$22, 000 on a note payable, plus $2, 200 interest.Billings agrees to accept 700 shares of Cramer common stock in full settlement of the debt.The stock has a par value of $10 per share and a current market value of $32 a share.
Required:
Record this debt restructuring on the books of Cramer.

Question

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The Answer of Cramer, Inc.owes Billings, Inc.$22, 000 on a note payable, plus $2, 200 interest.Billings agrees to accept 700 shares of Cramer common stock in full settlement of the debt.The stock has a par value of $10 per share and a current market value of $32 a share.
Required:
Record this debt restructuring on the books of Cramer.