A company is coming out of reorganization Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) Book Value 80,000 200,000 300,000 Receivables Goodwill Buildings Inventory 300,000 330,000 Additional Paid-in Capital Retained Earnings 20,000 (70,000) The company's assets have a $760,000 reorganization value. As part of the reorganization, the company's owners transferred 80 percent of the outstanding stock to the creditors. with the following accounts: Fair Value $ Prepare the journal entry that is necessary to adjust the company's records to fresh start accounting. General Journal 90,000 210,000 400,000 300,000 Debit Credit
A company is coming out of reorganization Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) Book Value 80,000 200,000 300,000 Receivables Goodwill Buildings Inventory 300,000 330,000 Additional Paid-in Capital Retained Earnings 20,000 (70,000) The company's assets have a $760,000 reorganization value. As part of the reorganization, the company's owners transferred 80 percent of the outstanding stock to the creditors. with the following accounts: Fair Value $ Prepare the journal entry that is necessary to adjust the company's records to fresh start accounting. General Journal 90,000 210,000 400,000 300,000 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company is coming out of reorganization
Book Value
80,000
Receivables
Inventory
Buildings
Liabilities
Common stock
Additional paid-in capital
Retained earnings (deficit)
200,000
Receivables
Goodwill
Buildings
Inventory
300,000
300,000
Additional Paid-in Capital
Retained Earnings
330,000
20,000
(70,000)
with the following accounts:
Fair Value
General Journal
90,000
The company's assets have a $760,000 reorganization value. As part of the
reorganization, the company's owners transferred 80 percent of the outstanding stock to
the creditors.
210,000
Prepare the journal entry that is necessary to adjust the company's records to fresh start
accounting.
400,000
300,000
Debit
Credit
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