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...


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 balance sheet was as 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 Stockholders' Equity


         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.




  1. Logan's July 1 balance sheet after the quasi-reorganization should show total assets of _________





  1. The balance in the Additional paid-in capital after the quasi-reorganization on July 1, is ____________





  1. Logan's deficit after the quasi-reorganization on July 1, 2016, should be ________________




Jun 01, 2022
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