Ristoni Company is in the process of emerging from a Chapter 11 bankruptcy. It will apply fresh start accounting as of December 31 2013. The
company currently has 33000 shares of common stock outstanding with a $231000 par value. As part of the reorganization the owners will
contribute 22000 shares of this stock back to the company. A retained earnings deficit balance of $349000 exists at the time of this
reorganization.

The company%u2019s liabilities will be settled as follows. Assume that all notes will be issued at reasonable interest rates.

Accounts payable of $83000 will be settled with a note for $8000. These creditors will also get 1000 shares of the stock contributed by the
owners.

Accrued expenses of $38000 will be settled with a note for $7000.

Note payable of $103000 (due 2017) was fully secured and has not been renegotiated.

Note payable of $225000 (due 2016) will be settled with a note for $53000 and 12000 shares of the stock contributed by the owners.

Note payable of $215000 (due 2014) will be settled with a note for $74000 and 9000 shares of the stock contributed by the owners.

Note payable of $185000 (due 2015) will be settled with a note for $113000.

Prepare all journal entries for Ristoni so that the company can emerge from the bankruptcy proceeding. (Do not
round intermediate calculations. Round your answers to the nearest dollar amount.)