Holmes corpoaration has file a voluntary pettition with the bankrupcy court in hopes of reorganizing. A statement of financial affiars has been prepared for the company showing these debts:

Liabilities with priority:

Salaries payable………………………………………………………………………………………..18,000

Fully secured creditord:

Notes payable(secured by land and buidling valued at $84,00)……………70,000

Partially secured creditors:

Notes payable(secured by inventory value at $30,000)…………………..140,000

Unsecured creditors:

Notes payable………………………………………………………………………………….50,000

Accouns payable…………………………………………………………………………….10,000

Accrued expenses………………………………………………………………………….4,000

Holmes has 10,000 shares of common stock outstanding with a par value of $5 per shares. In addition, it is currently reporting a deficit balance of $132,000.

Company official have proposed the following reorganization plan

The company assets have a total book valur of $210,000, an mount considered to be equal to fir value. The reorganization value of the assets as a whole, though is set at $225,000

Employees will receive a 1-yearnote in lieu of all salaries owed. Interest will be 10 percent, a normal rate or this type of liability

The fully secured note will have all future interest dropped from 15 percent rate, which is now unrealistic, to a 10 percent rate

The partially secured note payable will be satisfied by signing a new 6-yers $30,000 note paying 10 percent annual interest. In addition, this creditor will received 5,000 new shares of Holmes common stock

An outside investors has been enlisted to buy 6,000 new shares of common stock t $6 per share

The unsecured creditors will be offered 20cents on the dollar to settle the remaining liabilities

If this plan of reorganization is accepted and becomes effective, what journal entries would Holmes Corporation record?

Note: Provide Solution in an excel sheet