Required 11. Record revaluation of inventory.2. Record revaluation of land.3. Record the entry to eliminate a portion of deficit against available additional paid in capital.4. Record the entry to eliminate the remainder of the deficit against common stock.Required 2 Prepare a balance sheet as it would appear immediately after the restatement.Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Required 1 Required 2Prepare a balance sheet as it would appear immediately after the restatement.Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).AssetsHEIRLOOM WATCH CORPORATIONBalance SheetAt January 1, 2025($ in millions)Total assetsLiabilities and stockholders' equityLiabilitiesTotal Liabilities and Stockholders' Equity< Required 1Required 2 > A new CEO was hired to revive the floundering Heirloom Watch Corporation. The company had endured operating losses for severalyears, but confidence was emerging that better times were ahead. The board of directors and shareholders approved a quasi-reorganization for the corporation. The reorganization included devaluing inventory for obsolescence by $219 million and increasingland by $10 million. Immediately before the restatement, on December 31, 2024, Heirloom Watch Corporation's balance sheetappeared as follows (in condensed form):CashReceivablesInventoryLandBuildings and equipment (net)LiabilitiesCommon stock (640 million shares at $1 par)Additional paid-in capitalRetained earnings (deficit)Required:1. Prepare the journal entries appropriate to record the quasi-reorganization on January 1, 2025.2. Prepare a balance sheet as it would appear immediately after the restatement.Heirloom Watch CorporationBalance SheetOn December 31, 2024($ in millions)Complete this question by entering your answers in the tabs below.Required 1 Required 2View transaction listPrepare the journal entries appropriate to record the quasi-reorganization on January 1, 2025.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers inmillions (i.e., 10,000,000 should be entered as 10).Journal entry worksheet<12Note: Enter3$ 498946989162$858$ 489640129(400)$ 858Record revaluation of inventory.4fore anedito>

Journal Entry is the primary step to record the transaction in the books of accounts. The balance…

Answered: Required 1 1. Record revaluation of…

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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Required 1

1. Record revaluation of inventory.

2. Record revaluation of land.

3. Record the entry to eliminate a portion of deficit against available additional paid in capital.

4. Record the entry to eliminate the remainder of the deficit against common stock.

Required 2

Prepare a balance sheet as it would appear immediately after the restatement.

Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

A new CEO was hired to revive the floundering Heirloom Watch Corporation. The company had endured operating losses for several
years, but confidence was emerging that better times were ahead. The board of directors and shareholders approved a quasi-
reorganization for the corporation. The reorganization included devaluing inventory for obsolescence by $219 million and increasing
land by $10 million. Immediately before the restatement, on December 31, 2024, Heirloom Watch Corporation's balance sheet
appeared as follows (in condensed form):
Cash
Receivables
Inventory
Land
Buildings and equipment (net)
Liabilities
Common stock (640 million shares at $1 par)
Additional paid-in capital
Retained earnings (deficit)
Required:
1. Prepare the journal entries appropriate to record the quasi-reorganization on January 1, 2025.
2. Prepare a balance sheet as it would appear immediately after the restatement.
Heirloom Watch Corporation
Balance Sheet
On December 31, 2024
($ in millions)
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
View transaction list
Prepare the journal entries appropriate to record the quasi-reorganization on January 1, 2025.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in
millions (i.e., 10,000,000 should be entered as 10).
Journal entry worksheet
<
1
2
Note: Enter
3
$ 49
89
469
89
162
$
858
$ 489
640
129
(400)
$ 858
Record revaluation of inventory.
4
fore anedito
>

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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