Becket Corporation's accountant has prepared the following balance sheet as of November 10, 2020, 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, 2020 Assets Cash $ 37,000 Accounts receivable (net) 86,000 Investments 51,000 Inventory (net realizable value is expected to approximate 80% of cost) 105,000 Land 82,000 Buildings (net) 288,000 Equipment (net) 126,000 Total assets $775,000 Liabilities and Equities Accounts payable $184,000 Notes payable-current (secured by equipment) 258,000 Notes payable-(due in 2023) (secured by land and buildings) 350,000 Common stock ($10 par value) 70,000 Retained earnings (deficit) (87,000) Total liabilities and equities $775,000 The company has presented the following proposal: . . . The reorganization value of the company's assets prior to issuing additional shares mentioned later in the proposal, selling the company's investment, and conveying title to the land is set at $859,000 based on discounted future cash flows. Accounts receivable of $51,000 are written off as uncollectible. Investments are worth $90,000, land is worth $130,000, the buildings are worth $350,000, and the equipment is worth $111,000. An outside investor has been found to buy 8,000 shares of common stock at $11 per share. The company's investments are to be sold for $90,000 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 $155,000 of notes due in 2024 that pay 10 percent annual cash interest. All accounts payable will be exchanged for $65,000 in notes payable due in 2021 that pay 8 percent annual cash interest. Title to land costing $45,000 but worth $75,000 will be transferred to the holders of the note payable due in 2023. In addition, these creditors will receive $190,000 in notes payable (paying 10 percent annual interest) coming due in 2027. These creditors also are issued 3,000 shares of previously unissued common stock. Becket retains the remainder of its land. . Answer is not complete. Credit Debit 39,000 48,000 62,000 No Transaction General Journal 1 1 Investments Land Buildings Goodwill Accounts receviable Inventory_ Equipment Additional paid-in capital 51,000 21,000 15,000 2 2 88,000 Cash Common stock Additional paid-in capital 80,000 8,000 3 3 90,000 Cash Investments 90,000 4 4 258,000 Notes payablecurrent Cash Notes payable (due in 2023) Gain on discharge of debt 90,000 155,000 13,000 la So XX e XS S SO 5 Accounts payable Notes payable (due in 2021) Gain on discharge of debt 184,000 65,000 119,000 6 6 X295,000x Notes payable (due in 2021) Land Notes payable (due in 2024) Common stock 75,000 190,000 30,000 7 7 Gain on discharge of debt Additional paid-in capital Retained earnings