Logan's July 1 balance sheet after the quasi-reorganization should show total assets of _________ 5. Assuming that the share dividends declared in item f was 20%, what is the amount debited to retained earnings as aresult of the declaration of stock dividends?PROBLEM 3: Logan Corp. has incurred losses from operations for many years. At the recommendation of the newlyhired president, the board of directors noted to implement a quasi-reorganization, subject to the stockholders' andcreditors' approval. Immediately, prior to the quasi-reorganization, on June 30, 2016, Logan's balance sheet was asfollows:AssetsCurrent assetsP1,375,000Property, plant and equipmentOther noncurrent assets3,375,000500,000P5,250,000Total assetsLiabilities and Stockholders' EquityTotal liabilitiesP1,500,000Ordinary shares, P10 par valueAdditional paid-in capitalDeficit4,000,000750,000(1,000,000)Total liabilities and stockholders' equityP5,250,000The stockholders and creditors approved the quasi-reorganization effective July 1, 2016, to be accomplished by areduction in property, plant, and equipment (net) P875,000, a reduction in other noncurrent assets of P375,000, and areduction in par value from P10 to P5.1. Logan's July 1 balance sheet after the quasi-reorganization should show total assets of2. The balance in the Additional paid-in capital after the quasi-reorganization on July 1, is3. Logan's deficit after the quasi-reorganization on July 1, 2016, should be

as per your requirement balance of total assets after quasi-reorganization are as follows

Answered: Logan's July 1 balance sheet after the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

IFRS 10 is an accounting standard that provides guidelines to consolidate financial statements for group companies. The following questions relate to a transaction between companies within a group where a sale of a non-depreciable asset occurred in the current year. (a) Describe the consolidation procedure that will be applied to account for the sale of an asset between the parent and subsidiary in the consolidated financial statements. (b) Discuss the effect of a profit and loss on sale on: (i) The consolidated statement of financial position (ii) The consolidated statement of profit or loss and other comprehensive Please note: Your answer should comply with the requirements of International Financial Reporting Standards (IFRS). Journals and preparation of financial statements are not required.
How do accounting theories, such as agency theory and stakeholder theory, inform accounting practices and policies?
Assume that both the Parent and Subsidiary adopt 31 December as their financial year-end. Further assume that the transactions were conducted on cash basis. For each of the following independent scenarios in each of the independent parts: (1) Prepare all the relevant journal entries in the separate financial statements of the respective companies. (ii) Prepare all the relevant consolidation journal entries for the preparation of the consolidated financial statements of the Parent. (iii) Compare and contrast the accounting treatment/principles that you had applied in the independent scenarios in each part in preparing the journal entries and consolidation journal entries. Part A (a) On 20 December 20x1, a 90%-owned Subsidiary sold a piece of inventory which it bought for $200,000 to its Parent for $300,000. As at 31 December 20x1, that piece of inventory was still with the Parent and the net realisable value of the inventory was $250,000 on this date. (b) On 20 December 20x1, a Parent…
Interpret the results of the ratios and explain what does that mean to the performance of the organization. The answer you provided should be supported by relevant literature review including scientific journal, website and related books.
Although HTML and XML documents look very similar, and both use tags, explain how they differ significantly as a financial reporting medium.
Mondesto Company has the following debts: Unsecured creditors Liabilities with priority Secured liabilities: Debt 1, $246,000; value of pledged asset Debt 2, $206,000; value of pledged asset Debt 3, $138,000; value of pledged asset $ 248,000 128,000 Selling value of free assets 198,000 118,000 176,000 The company also has a number of other assets that are not pledged in any way. The creditors holding Debt 2 want to receive at least $170,800. For how much do the free assets have to be sold so that the creditors associated with Debt 2 will receive exactly $170,800?
Based on the information provided below, prepare appropriate consolidation journal entries for possible account adjustment or elimination. Reference appropriate accounting standards to explain the approach which needs to be taken for the adjusting journals. Parent paid $110 000 on 30 June for all the shares of Subsidiary, whose equity at that date is share capital $72 000 and retained profits $28 000. However, the assets of Subsidiary are not all recorded at their fair value. Assume that all companies adopt the revaluation model under AASB 116. The discrepancies are: Carrying Amount $ Fair Value Investments 26 000 54 000 Accounts receivable 14 000 8 000 PPE 26 000 12 000 Inventory 70 000 76 000 Franchise Nil 10 000
(a) Draw up a profit or loss appropriation account for Lekan, Chuks & Hassan for the year ending 31 March 2015 and prepare current account as at that date from the following information: 1. Drawings: Lekan N3,500, Chuks N11,500 and Hassan N8,500 2. Capital account: Lekan N30,000, Chuks N22,500 and Hassan N17,500 3. Current account: Lekan N9,000, Chuks N4,000 and Hassan N3,000 4. Profits to be shared: Lekan 50%, Chuks 30% and Hassan 20% 5. Salaries to be credited: Chuks N11,000 and Hassan N14,000 6. Interest to be charged on drawings: Lekan N600, Chuks N450 and Hassan N250 7. Net profits N92,400 8. Interest to be charged on Capital: Lekan N1,800, Chuks N1,350 and Hassan N1,050
Assuming that the quasi reorganization shall be accomplished as follows: Property, plant and equipment are to be reduced to their fair market value of P800,000. Inventories are to be written down by P50,000. • Unaccrued obligation shall be recognized at P150,000. • The par value of ordinary Shares will be reduced to P5. 1. What is the balance of the retained earnings account as of 31 December 2019? Assuming that the quasi reorganization shall be accomplished as follows: Property, plant and equipment are to be reduced to their fair market value of P800,000. Inventories are to be written down by P50,000. • Unaccrued obligation shall be recognized at P150,000. • The par value of ordinary Shares will be reduced to P5. 2. What is the balance of the retained earnings account as of 31 December 2019?
Proper descriptive solution of both (a) and (b)
please assist ne with that

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS