4, only do parts c and d

During the recent recession, Polydorous incorporated accumulated a deficit in retained earnings. Although still operating at a loss, the company posted better results during 20X1. Polydorous is having trouble paying suppliers on time and is paying interest when it is due. The company files for protection under Chapter 11 of the Bankruptcy Code and has the following llabilities and stockholders' equity accounts at the time the petition is filed: A plan of reorganization is filed with the court, which approves it after review and obtaining creditor and investor votes. The plan of reorganization includes the following actions: 1. The prepetition accounts payable wili be restructured according to the following: (a) $41,300 will be paid in cash, (b) $21,800 wiII be ellminated, and (c) the remaining $98,600 will be exchanged for a four-year, secured note payable paying 12 percent interest. 2. The interest payable will be restructured as follows: elimination of $11,000 of the interest and payment of the remaining $11,000 In cash 3. The 10 percent, unsecured notes payable will be restructured as follows: (a) $60,400 of them will be elliminated; (b) $11,000 of them will be paid in cash; (c) $243,200 of them will be exchanged for a 4-year, 12 percent secured note; and (d) the remaining $27,200 will be exchanged for 2,720 shares of newly issued common stock having a par value of $10. 4. The preferred shareholders will exchange their stock for 5,110 shares of newly issued $10 par common stock. 5. The common shareholders will exchange their stock for 2,120 shares of newly issued $10 par common stock. After extensive analysis, the company's reorganization value is determined to be $515,100 prior to any payments of cash required by the reorganization plan. An additional $10,500 in current llabilities have been incurred since the petition was filed. After the reorganization is completed, the capital structure of the company will be as follows: An evaluation of the assets' fair values was made after the company completed its reorganization, immediately prior to the point the company emerged from the proceedings. The following information is avallable: Prepare journal entries for execution of the plan of reorganization with its general restructuring of debt and capital. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the debt discharge. B Record the exchange of stock for stock. c Record the fresh start accounting and the elimination of the deficit. Note : C= journal entry has been entered Tepare the balance sheet for the company on completion of the plan of reorganization. For retained earnings enter the net change in Fresh Sta Vote: Amounts to he dohited chnuld h. During the recent recession, Polydorous incorporated accumulated a deficit in retained earnings. Although still operating at a loss, the company posted better results during 20X1. Polydorous is having trouble paying suppliers on time and is paying interest when it is due. The company files for protection under Chapter 11 of the Bankruptcy Code and has the following llabilities and stockholders' equity accounts at the time the petition is filed: A plan of reorganization is filed with the court, which approves it after review and obtaining creditor and investor votes. The plan of reorganization includes the following actions: 1. The prepetition accounts payable wili be restructured according to the following: (a) $41,300 will be paid in cash, (b) $21,800 wiII be ellminated, and (c) the remaining $98,600 will be exchanged for a four-year, secured note payable paying 12 percent interest. 2. The interest payable will be restructured as follows: elimination of $11,000 of the interest and payment of the remaining $11,000 In cash 3. The 10 percent, unsecured notes payable will be restructured as follows: (a) $60,400 of them will be elliminated; (b) $11,000 of them will be paid in cash; (c) $243,200 of them will be exchanged for a 4-year, 12 percent secured note; and (d) the remaining $27,200 will be exchanged for 2,720 shares of newly issued common stock having a par value of $10. 4. The preferred shareholders will exchange their stock for 5,110 shares of newly issued $10 par common stock. 5. The common shareholders will exchange their stock for 2,120 shares of newly issued $10 par common stock. After extensive analysis, the company's reorganization value is determined to be $515,100 prior to any payments of cash required by the reorganization plan. An additional $10,500 in current llabilities have been incurred since the petition was filed. After the reorganization is completed, the capital structure of the company will be as follows: An evaluation of the assets' fair values was made after the company completed its reorganization, immediately prior to the point the company emerged from the proceedings. The following information is avallable: Prepare journal entries for execution of the plan of reorganization with its general restructuring of debt and capital. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the debt discharge. B Record the exchange of stock for stock. c Record the fresh start accounting and the elimination of the deficit. Note : C= journal entry has been entered Tepare the balance sheet for the company on completion of the plan of reorganization. For retained earnings enter the net change in Fresh Sta Vote: Amounts to he dohited chnuld h