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The trial balance of Universal Inc. as at December 31, 2023 is as follows: Debit Credit Cash $ 66,500 Accounts receivable 142,500 Allowance for doubtful

The trial balance of Universal Inc. as at December 31, 2023 is as follows:

Debit Credit

Cash $ 66,500

Accounts receivable 142,500

Allowance for doubtful accounts 27,000

Inventory 225,000

Property, plant, and equipment 910,000

Accumulated depreciation 315,000

Patents 180,000

Accounts payable 165,000

Notes payable (10% interest) 225,000

Accrued interest on notes 60,000

12% bonds payable 600,000

Common stock (18,000 shares) 399,000

Retained earnings (deficit) 267,000

$1,791,000 $1,791,000

The following reorganization plan has been approved by the shareholders and the creditors:

The holders of the notes payable agree to cancel the accrued interest owing, to extend the due date, and to reduce the interest rate. In return they will receive a pledge of inventory and receivables as security throughout the life of the notes.

Trade creditors agree to accept a payment of $142,500 as full settlement of their claims.

The bondholders agree to exchange their bonds for $375,000 in 8% first-mortgage bonds and 45,000 common shares.

All parties have agreed that the following reflect the fair values of the individual assets: Accounts receivable $ 108,000 Allowance for doubtful accounts 3,000 Inventory 195,000 Property, plant, and equipment, net 405,000 Patents 255,000

Im looking for the journal entries and balance sheet after reorganization

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