At January 1, 2009, TD owed First Bank $300,000, under an 11% note with 3 years remaining to maturity. Due to financial difficulties, TD was unable to pay the previous year's interest. First Bank agreed to settle TD's debt in exchange for land having a fair value of $225,000. TD purchased the land in 2005 for $162,000.
Required:
Prepare the journal entry(s) to record the restructuring of the debt by TD.

Question

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The Answer of At January 1, 2009, TD owed First Bank $300,000, under an 11% note with 3 years remaining to maturity. Due to financial difficulties, TD was unable to pay the previous year's interest. First Bank agreed to settle TD's debt in exchange for land having a fair value of $225,000. TD purchased the land in 2005 for $162,000.
Required:
Prepare the journal entry(s) to record the restructuring of the debt by TD.

At January 1, 2009, TD Owed First Bank $300,000, Under