Reference no: EM132873687
Current conditions warrant that the Peach Company should undergo a quasi-reorganization on December 31, 2017:
Selected items prior to the quasi-reorganization are:
1. Inventory was recorded on December 31, 2017, at cost of P3,250,000. The fair value of the inventory was P3,000,000.
2. Property, plant, and equipment were recorded at December 31, 2017, at P6,000,000 net of the accumulated depreciation. The fair value of the property was P5,000,000.
3. The par value of the share capital is to be reduced from P10 to P5 per share. Shareholder's equity consisted of: Share capital, par value P10 per share, authorized, issued and outstanding 350,000 shares P3,500,000 Share premium 800,000 Retained earnings (deficit) (450,000) Self-Help: You can also refer to the sources below to help you further understand the lesson: 22 3,850,000
4. The resulting deficit balance is to be offset against the share premium.
Required:
Problem a. Prepare journal entries to give effect to the reorganization.
Problem b. Present the shareholder's equity after the reorganization.
|
Why might conflict arise within a workplace
: Why might conflict arise within a workplace at any level of the organisation?
|
|
What is the company return on assets
: The Blue Lagoon has a return on equity of 18.9 percent, an equity multiplier of 1.9, and a total asset turnover of 1.45. What is the company's Return on Assets
|
|
Bona fide occupational qualification
: Bona Fide Occupational Qualification. Take a stance and discuss either why you think it is fair or why you do not think it is fair.
|
|
How much should be recorded as investment income
: How much should be recorded as investment income for the current year assuming that the preference share capital of Pen Inc. are non-cumulative
|
|
Prepare journal entries to give effect to the reorganization
: Prepare journal entries to give effect to the reorganization. Property, plant, and equipment were recorded at December 31, 2017, at P6,000,000 net.
|
|
Demographic and psychographic profile
: How does your demographic and psychographic profile differ from that of your parents or your siblings?
|
|
What are the precautions a medical professional
: What are the precautions a medical professional, should take when handled medical records?
|
|
Prepare Bonita journal entries to record the sale on July
: By October 11, 2020, retailers returned systems to Bonita and were granted credits of $72,000. Prepare Bonita journal entries to record the sale on July
|
|
Discuss the accounting standards are as product of politica;
: Discuss the accounting standards are as a product of political or economic consequences? Support your answer with examples
|