The Larisa Company is exiting bankruptcy reorganization with the following accounts:Book ValueFair Value$ 81,000$ 92,000ReceivablesInventoryBuildings201,000301,000301, 000331,00022,000(71, 000)212,000402,000301,000LiabilitiesCommon stockAdditional paid-in capitalRetained earnings (deficit)The company's assets have a $761,000 reorganization value. As part of the reorganization, thecompany's owners transferred 70 percent of the outstanding stock to the creditors.Prepare the journal entry (or entries) necessary to adjust the company's records to fresh startaccounting. (If no entry is required for a transaction/event, select "No journal entry required" in thefirst account field.)

A journal entry is an accounting entry that is used to record a business transaction in the…

The Larisa Company is exiting bankruptcy reorganization with the Fair Value $ 92,000 212,000 402,000 301,000 Book Value $ 81,000 201,000 301,000 301,000 331,000 22,000 (71,000) Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) The company's assets have a $761,000 reorganization value. As p

The Larisa Company is exiting bankruptcy reorganization with the Fair Value $ 92,000 212,000 402,000 301,000 Book Value $ 81,000 201,000 301,000 301,000 331,000 22,000 (71,000) Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) The company's assets have a $761,000 reorganization value. As p

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

The Larisa Company is exiting bankruptcy reorganization with the following accounts:
Book Value
Fair Value
$ 81,000
$ 92,000
Receivables
Inventory
Buildings
201,000
301,000
301, 000
331,000
22,000
(71, 000)
212,000
402,000
301,000
Liabilities
Common stock
Additional paid-in capital
Retained earnings (deficit)
The company's assets have a $761,000 reorganization value. As part of the reorganization, the
company's owners transferred 70 percent of the outstanding stock to the creditors.
Prepare the journal entry (or entries) necessary to adjust the company's records to fresh start
accounting. (If no entry is required for a transaction/event, select "No journal entry required" in the
first account field.)

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