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
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
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
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.
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