Stuck on Journal Entry #3.

Holmes Corporation has filed a voluntary petition with the bankruptcy court in hopes of reorganizing A statement of financial affairs has been prepared for the company showing these debts $ 33,000 129,000 abilities with priority: Salaries payable Fully secured creditors! Notes Bayable secured by land and buildings valued at $99,000) Partially secured creditors Notes payable (secured by inventory valued at $45,000) Unsecured creditors: Notes payable Accounts payable Accrued expenses 155,000 65,000 25,000 Holmes has 17000 shares of common stock outstanding with a par value of $9 per share. In addition, it is currently reporting a deficit balance of $137.000 Company officials have proposed the following reorganization plan The company's assets have a total book value of $429.000, an amount considered to be equal to fair value. The reorganization value of the assets as a whole though is set at $461000 Employees will receive a one year note in lieu of all salaries owed Interest will be 10 percent a normal rate for this type of liability The fully secured note will have all futute interest dropped from a 15 percent rate, which is now unrealistic, fo a 10 percent rate, The partially secured note payable will be satisfied by signing a new 6-year $45.000 note paying 10 percent annual interest in An outside investor has been enlisted to buy 10,000 new shares of common stock at $10 per Share The unsecured creditors will be offered 10 cents on the dollar to settle the remaining abilities If this plan of reorganization is accepted and becomes offective, what journal entries would Holmes Corporation record? (If no entry in required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Goodwill Additional paid in capital > 32,000 2 2 33,000 Salary payable Note payable 1 year 33,000 3 3 155,000 Notes payable Note payable-years Common stock Additional paid in capital Gain on discharge of debt 000 45,000 81,000 9,000 4 4 100,000 Cash Additional paid in capital Common stock 10,000 90,000