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Becket Corporation s accountant has prepared the following balance sheet as of November 1 0 , 2 0 2 4 , the date on which

Becket Corporations 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 payablecurrent (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 companys 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 companys assets prior to issuing additional shares, selling the companys investments, and conveying title to the land is set at $775,000 based on discounted future cash flows.
Required:
Prepare journal entries for Becket to record the transactions put forth in this reorganization plan.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest dollar amount.

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