The following balance sheet was prepared for Crane Company on December 31, 2015:

Crane Company Balance Sheet December 31, 2015
Cash				$34,300
Accounts Receivable		$51,400
Less: Allowance for Uncollectibles		3,800		47,600
Inventory				74,300
Property and Equipment (net)				149,000
Goodwill				20,100
Total Assets				$325,300
Accounts Payable				$68,000
10% Bonds Payable, due 6/30/18				150,000
Common Stock, $20 par, 10,000 Shares Outstanding				200,000
Retained Earnings (deficit)				(92,700	)
Total Equities				$325,300

Crane Company has had operating difficulties, accumulating a deficit over several years before 2015. During 2015, however, Crane reported a significantly lower operating loss, and prospects for the future are relatively bright. Although management and stockholders are optimistic about the future, it is almost certain that the company will lack the necessary working capital to handle existing obligations and expected future growth. In light of these facts, Crane has filed for reorganization under Chapter 11 of the Bankruptcy Reform Act of 1978. The reorganization plan, the provisions of which are set out below, has received the approval of stockholders, creditors, and the court. Provisions of the reorganization plan are as follows:

1.		Accounts receivable are to be written down to $36,000 to reflect their current expected realizable value.
2.		Inventory is fairly valued, but goodwill is to be written off, and property and equipment is to be written down to its fair value of $143,700.
3.		The $20 par value common stock is to be replaced with $4 par value common stock on a share-for-share basis in order to create some reorganization capital, which will be used to eliminate the deficit.
4.		The bondholders agree to exchange their bonds for new 8% bonds in the same maturity amount, but with a due date of June 30, 2022, and 5,900 shares of $4 par value common stock. The stock will be divided ratably among the bondholders. The fair value of the common stock is equal to its par value.
5.		Accounts payable are expected to be paid in full, although creditors have agreed to extend due dates by as much as six months.
6.		Any accumulated deficit is to be eliminated.

A- Prepare journal entries to record the effects of the reorganization plan. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record the revaluation of assets)
(To record the exchange of $20 par common stock for $4 par common stock)
(To record the exchange of 8% bonds and common stock for the 10% bonds)
(To eliminate the deficit in retained earnings)

This question also has 1 more parts to answer (B) but the system is not revealing it until one answers to part (A)