Hogan, Inc.is a telecommunications company.Currently, Hogan is experiencing difficulty in servicing its long-term debt.The corporation has obtained permission from its creditors to restructure outside of the court system with the following transactions:
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a.A piece of equipment that had cost Hogan $95,000 and had $19,000 of accumulated depreciation was transferred to a creditor in full settlement of a $45,000 note with $2,250 of accrued interest.?
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b.2,000 shares of $2 par value common stock were issued to a creditor in full payment of a $80,000 loan, plus accrued interest of $800.The stock was selling for $30 per share on the date of exchange.?
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c.A loan with a book value of $50,000 and accrued interest of $1,000 was restructured so that three annual installments of $12,000 will satisfy both the principal and interest in full.?
Required:
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Prepare the necessary journal entries to record these transactions in the journal of Hogan.?

Question

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The Answer of Hogan, Inc.is a telecommunications company.Currently, Hogan is experiencing difficulty in servicing its long-term debt.The corporation has obtained permission from its creditors to restructure outside of the court system with the following transactions:
?
a.A piece of equipment that had cost Hogan $95,000 and had $19,000 of accumulated depreciation was transferred to a creditor in full settlement of a $45,000 note with $2,250 of accrued interest.?
?
b.2,000 shares of $2 par value common stock were issued to a creditor in full payment of a $80,000 loan, plus accrued interest of $800.The stock was selling for $30 per share on the date of exchange.?
?
c.A loan with a book value of $50,000 and accrued interest of $1,000 was restructured so that three annual installments of $12,000 will satisfy both the principal and interest in full.?
Required:
?
Prepare the necessary journal entries to record these transactions in the journal of Hogan.?