Shamrock Corporation is having financial difficulty and therefore has asked Bridgeport National Bank to restructure its $5.95 million note outstanding. The present note has 3 years remaining and pays a current rate of interest of 10%. The present market rate for a loan of this nature is 12%. The note was issued at its face value. The following are four independent situations. Prepare the journal entry that Shamrock and Bridgeport National Bank would make for each of these restructurings.

(a)		Bridgeport National Bank agrees to take an equity interest in Shamrock by accepting common stock valued at $3,672,000 in exchange for relinquishing its claim on this note. The common stock has a par value of $1,772,000.
(b)		Bridgeport National Bank agrees to accept land in exchange for relinquishing its claim on this note. The land has a book value of $3,227,000 and a fair value of $4,183,000.
(c)		Bridgeport National Bank agrees to modify the terms of the note, indicating that Shamrock does not have to pay any interest on the note over the 3-year period.
(d)		Bridgeport National Bank agrees to reduce the principal balance due to $4,958,333 and require interest only in the second and third year at a rate of 10%.

No.	Account Titles and Explanation	Debit	Credit
(a)	Shamrock Corporation
	Bridgeport National Bank
(b)	Shamrock Corporation
	Bridgeport National Bank
(c)	Shamrock Corporation
	Bridgeport National Bank
(d)	Shamrock Corporation
	Bridgeport National Bank