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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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 balance sheet was as follows:

 

                                         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 Stockholders' Equity

         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 ________________

 

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Corporate restructuring
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education