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.

Debt Restructuring

The process by which terms of an existing debt are modified, often involving the reduction of the debt and/or extension of payment terms.

Common Stock

Represents equity ownership in a corporation, providing holders with voting rights and a share in the company's profits through dividends.

Note Payable

A written agreement to pay a certain sum of money, typically with interest, at a future date.