Becket Corporation$$s accountant has prepared the following balance sheet as of November $10,2024,$ the date on which the company is to release a plan for reorganizing operations under Chapter $11$ of the Bankruptcy Reform Act:

BECKET CORPORATION

Balance Sheet

November $10,2024$

Assets

Cash $ $27,000$

Accounts receivable $($net$)76,000$

Investments $41,000$

Inventory $($net realizable value is expected to approximate $75\%$ of cost$)95,000$

Land $72,000$

Buildings $($net$)263,000$

Equipment $($net$)123,000$

Total assets $ $697,000$

Liabilities and Equities

Accounts payable $ $174,000$

Notes payable$$current $($secured by equipment$)248,000$

Notes payable$($due in $2027)($secured by land and buildings$)340,000$

Common stock $($$$10$ par value$)40,000$

Retained earnings $($deficit$)(105,000)$

Total liabilities and equities $ $697,000$

The company has presented the following proposal:

Accounts receivable of $$41,000$ are written off as uncollectible. Investments are worth $$70,000,$ land is worth $$110,000,$ the buildings are worth $$330,000,$ and the equipment is worth $$101,000.$

An outside investor has been found who will buy $5,000$ shares of common stock at $$11$ per share.

The company$$s investments are to be sold for $$70,000$ in cash with the proceeds going to the holders of the current note payable. The remainder of these short$-$term notes will be converted into notes payable with a face value of $$145,000$ that comes due in $2028.$ The note pays $9$ percent annual cash interest.

All accounts payable will be exchanged for $$55,000$ in notes payable due in $2025$ that pay $7$ percent annual cash interest.

Title to land costing $$35,000$ but worth $$65,000$ will be transferred to the holders of the note payable due in $2027.$ These creditors will also receive $$188,000$ in notes payable $($paying $9$ percent annual interest$)$ coming due in $2031.$ These creditors will also receive $1,000$ shares of previously unissued common stock. Becket retains the remainder of its land.

The reorganization value of the company$$s assets prior to issuing additional shares, selling the company$$s investments, and conveying title to the land is set at $$775,000$ based on discounted future cash flows.

Prepare journal entries for becket to record the transaction put forth in this reorganization plan