Weldon Engineering owes one of its creditors $20,000. To settle the debt, Weldon pays $5,000 cash and also issues common stock valued at $15,000 to the creditor.
How would this repayment of the $20,000 debt be recorded in Weldon’s books?
Weldon Engineering owes one of its creditors $20,000. To settle the debt, Weldon pays $5,000 cash and also issues common stock valued at $15,000 to the creditor.
How would this repayment of the $20,000 debt be recorded in Weldon’s books?
