Answered: Current Assets P 1,375,000Property,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Assets P 1,375,000Property, plant and equipment 3,375,000Other non-current assets 500,000Total Assets P 5,250,000

Liabilities and Shareholders’ equity

Total liabilities P 1,500,000Ordinary shares, P10 par value 4,000,000Additional paid in capital 750,000Deficit (1,000,000)Total liabilities and equity P 5,250,000The stockholders and creditors approved the quasi reorganization effective July 1,2011, to be accomplishedby a reduction in property, plant and equipment (net) P 875,000, a reduction in other non-current assets ofP375,000, and a reduction in par value from P10 to P51.

Logan’s July 1 balan

ce sheet after the quasi-reorganization should show total assets ofa.

P 4,000,000b.

P 2,500,000c.

P 4,375,000d.

P 3,875,0002.

The balance in additional paid in capital after the quasi-reorganization on July 1 is:a.

P 750,000b.

P 2,000,000c.

P 500,000d.

P-0-3.

Logan’s deficit after the quasi

-reorganization on July 1,2011 should be:a.

P 750,000b.

P 250,000c.

P 500,000d.

P -0-

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