Logan's July 1 balance sheet after the quasi-reorganization should show total assets of _________ 2. The balance in the Additional paid-in capital after the quasi-reorganization on July 1, is ____________ 3. Logan's deficit after the quasi-reorganization on July 1, 2016, should
Logan Corp. has incurred losses from operations for many years. At the recommendation of the newly hired president, the board of directors noted to implement a quasi-reorganization, subject to the stockholders' and creditors' approval. Immediately, prior to the quasi-reorganization, on June 30, 2016, Logan's
Assets
Current assets P1,375,000
Property, plant and equipment 3,375,000
Other noncurrent assets 500,000
Total assets P5,250,000
Liabilities and
Total liabilities P1,500,000
Ordinary shares, P10 par value 4,000,000
Additional paid-in capital 750,000
Deficit (1,000,000)
Total liabilities and stockholders' equity P5,250,000
The stockholders and creditors approved the quasi-reorganization effective July 1, 2016, to be accomplished by a reduction in property, plant, and equipment (net) P875,000, a reduction in other noncurrent assets of P375,000, and a reduction in par value from P10 to P5.
1. Logan's July 1 balance sheet after the quasi-reorganization should show total assets of _________
2. The balance in the Additional paid-in capital after the quasi-reorganization on July 1, is ____________
3. Logan's deficit after the quasi-reorganization on July 1, 2016, should be ________________
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