The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value Fair Value Receivables $ 80,000 $ 90,000 Inventory 200,000 210,000 Buildings 300,000 400,000 Liabilities 300,000 300,000 Common stock 330,000 Additional paid-in capital 20,000 Retained earnings (deficit) (70,000 ) The company's assets have a $760,000 reorganization value. As part of the reorganization, the company's owners transferred 80 percent of the outstanding stock to the creditors. Prepare the journal entry that is 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.) Entry Options Below Additional paid-in capital Buildings Common stock Goodwill Inventory Liabilities Receivables Retained earnings Make Journal Entry to General Journal
The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value Fair Value Receivables $ 80,000 $ 90,000 Inventory 200,000 210,000 Buildings 300,000 400,000 Liabilities 300,000 300,000 Common stock 330,000 Additional paid-in capital 20,000 Retained earnings (deficit) (70,000 ) The company's assets have a $760,000 reorganization value. As part of the reorganization, the company's owners transferred 80 percent of the outstanding stock to the creditors. Prepare the journal entry that is 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.) Entry Options Below Additional paid-in capital Buildings Common stock Goodwill Inventory Liabilities Receivables Retained earnings Make Journal Entry to General Journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Larisa Company is exiting bankruptcy reorganization with the following accounts:
| Book Value | Fair Value | |||||
| Receivables | $ | 80,000 | $ | 90,000 | ||
| Inventory | 200,000 | 210,000 | ||||
| Buildings | 300,000 | 400,000 | ||||
| Liabilities | 300,000 | 300,000 | ||||
| Common stock | 330,000 | |||||
| Additional paid-in capital | 20,000 | |||||
| (70,000 | ) | |||||
The company's assets have a $760,000 reorganization value. As part of the reorganization, the company's owners transferred 80 percent of the outstanding stock to the creditors.
Prepare the
Entry Options Below
Additional paid-in capital
Buildings
Common stock
Inventory
Liabilities
Receivables
Retained earnings
Make Journal Entry to General Journal
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