What happens to this balance?LO 13-941. Jaez Corporation is in the process of goingthrough a reorganization. As of December 31,2020, the company's accountant has determinedthe following information although the company isstill several months away from emerging from thebankruptcy proceeding. Prepare a balance sheet inthe appropriate form.Book Value Fair ValueAssetsCash$ 23,000$ 23,000Inventory45,00047,000Land140,000210,000Buildings220,000260,000Equipment154,000157,000AllowedExpectedClaimsSettlementLiabilities as of the date of the order for reliefAccounts$ 123,000$ 20,000payableAccrued30,0004,000expensesIncome taxes22,00018,000рayableNote payable100,000100,000(due 2023,secured byland)Note payable170,00080,000(due 2025)Liabilities since the date of the order for reliefAccounts$ 60,000payableNote payable110,000(due 2022)Stockholders' equityCommon stock$ 200,000Deficit(233,000)LO 13-1042. Ristoni Company is in the process of emergingfromChantoor 11 honkruntev It will annly.hontor

41. Jaez Corporation is in the process of going through a reorganization. As of December 31, 2020, the company's accountant has determined the following information although the company is still several months away from emerging from the bankruptcy proceeding. Prepare a balance sheet in the appropriate form.

41. Jaez Corporation is in the process of going through a reorganization. As of December 31, 2020, the company's accountant has determined the following information although the company is still several months away from emerging from the bankruptcy proceeding. Prepare a balance sheet in the appropriate form.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 7P: Hamilton Companys balance sheet on January 1, 2019, was as follows: Korbel Company is considering...

See similar textbooks

Similar questions

Jaez Corporation is in the process of going through a reorganization. As of December 31, 2024, the company’s accountant has determined the following information although the company is still several months away from emerging from the bankruptcy proceeding. Net Book Value Fair Value Assets Cash $ 31,000 $ 31,000 Inventory 53,000 55,000 Land 164,000 218,000 Buildings 228,000 268,000 Equipment 162,000 165,000 Allowed Claims Expected Settlement Liabilities as of the date of the order for relief Accounts payable $ 131,000 $ 28,000 Accrued expenses 38,000 12,000 Income taxes payable 30,000 26,000 Note payable (due 2027, secured by land) 108,000 108,000 Note payable (due 2029) 178,000 88,000 Liabilities since the date of the order for relief Accounts payable $ 68,000 Note payable (due 2026) 118,000 Stockholders' equity Common stock $ 208,000 Deficit (241,000) Required: Prepare the balance sheet for Jaez…
Mario Company has been incurring losses for several years. On December 31, 2019, the SEC permitted Mario to implement a quasi-reorganization after due approval from its shareholders and creditors. Its balance sheet before quasi-reorganization is as follows. [Refer to the figure]The quasi-reorganization plan provides the following:• The PPE shall be revalued at an appraised amount of P8,500,000.• Goodwill shall be written off in full.• Par value shall be reduced by forty percent.• The deficit shall be wiped out firstly from Revaluation Surplus and any unabsorbed amount from Share Premium. How much is the total assets after the quasi-reorganization? How much is the Share Premium after the quasi-reorganization? How much is the Retained Earnings after the quasi-reorganization?
Mario Company has been incurring losses for several years. On December 31, 2019, the SEC permitted Mario to implement a quasi-reorganization after due approval from its shareholders and creditors. Its balance sheet before quasi-reorganization is as follows. [Refer to the figure]The quasi-reorganization plan provides the following:• The PPE shall be revalued at an appraised amount of P8,500,000.• Goodwill shall be written off in full.• Par value shall be reduced by forty percent.• The deficit shall be wiped out firstly from Revaluation Surplus and any unabsorbed amount from Share Premium.1. How much is the total assets after the quasi-reorganization? 2. How much is the Share Premium after the quasi-reorganization? 3. How much is the Retained Earnings after the quasi-reorganization?
Jade Company has been incurring losses for several years. On December 31, 2019, the SEC permitted Jade to implement a quasi-reorganization after due approval from its shareholders and creditors. Its balance sheet before quasi-reorganization is as follows. [Refer to the figure]The quasi-reorganization plan provides the following:• The PPE shall be revalued at an appraised amount of P8,500,000.• Goodwill shall be written off in full.• Par value shall be reduced by forty percent.• The deficit shall be wiped out firstly from Revaluation Surplus and any unabsorbed amount from Share Premium. Cash 400,000 Inventory 5,200,000 Property, Plant and Equipment 8,200,000 Goodwill 200,000 Liabilities 4,450,000 Share Premium 3,200,000 Deficit 2,150,000 Questions: 1. How much is the total assets after the quasi-reorganization? 2. How much is the Share Premium after the quasi-reorganization? 3. How much is the Retained Earnings after the quasi-reorganization?
The COCO Manufacturing Company has been forced into bankruptcy as of April 30, 2022. The statement of financial position on that date shows: ASSETS:Cash P 2,700Accounts Receivable 39,350Notes Receivable 18,500 Inventories 87,850Prepaid Expenses 950 Land and Buildings 61,250Equipment 48,800 Retained Earnings (30,850)Total ? LIABILITIES AND EQUITY: Accounts Payable P52,500 Notes Payable - PNB 15,000 Notes Payable - Suppliers 51,250 Accrued Wages 1,850 Accrued Taxes 4,650 Mortgage Bonds Payable 90,000 Common Stock - P 100 par 75,000 Total ? Additional Information:▪Accounts Receivable of P 16,110 and Noted Receivable of P 12,500 are expected to be…
The COCO Manufacturing Company has been forced into bankruptcy as of April 30, 2022. The statement of financial position on that date shows: ASSETS:Cash P 2,700Accounts Receivable 39,350Notes Receivable 18,500 Inventories 87,850Prepaid Expenses 950 Land and Buildings 61,250Equipment 48,800 Retained Earnings (30,850)Total ? LIABILITIES AND EQUITY: Accounts Payable P52,500 Notes Payable - PNB 15,000 Notes Payable - Suppliers 51,250 Accrued Wages 1,850 Accrued Taxes 4,650 Mortgage Bonds Payable 90,000 Common Stock - P 100 par 75,000 Total ? Additional Information:▪Accounts Receivable of P 16,110 and Noted Receivable of P 12,500 are expected to be…
Culver Inc. applies ASPE and had the following statement of financial position at the end of operations for 2019: CULVER INC.Statement of Financial PositionDecember 31, 2019 Cash $50,500 Accounts payable $ 93,000 Accounts receivable 90,000 Long-term debt 85,000 Inventory 82,000 Common shares 100,000 Machinery (net) 125,000 Retained earnings 89,500 Trademarks 20,000 $367,500 $367,500 During 2020, the following occurred: 1. Jia Inc. sold some of its trademarks. The trademarks had an unlimited useful life and a cost of $10,000. They were sold for proceeds of $19,500. 2. Machinery was purchased in exchange for long-term debt of $40,000. 3. Long-term debt in the amount of $16,000 was retired before maturity by paying $16,000 cash. 4. An additional $11,500 in common shares was issued. 5. Dividends totalling $13,200 were declared and paid to shareholders. Dividends paid are treated as financing…
The Modesto Company is facing possible liquidation.Using the following information, prepare a statement offinancial affairs in good form.Here’s the company’s most recent balance sheet: Assets Liabilities and equities Cash $12,000 Accounts payable $170,000Accounts Receivable 60,000 Notes payable 90,000Inventory 120,000 Mortgage payable 80,000Investments 45,000Equipment 105,000 Common stock 75,000Land 82,000 Retained earnings 9,000Total assets $424,000 Total Liab. and Eq’s $424,000 The mortgage payable is fully secured by the land. The land can be soldimmediately for $103,000The equipment partially secures the notes payable. The equipment is not ingood shape and at auction will bring only $30,000The market has declined so the investments have lost 40% of their value.It is estimated that 30% of the accounts receivable will have to be written off.The inventory is outdated and will bring only 50% of its book value atauction.Additional income taxes will be $26,000Administrative expenses for…
Deficit Corporation has incurred losses from operations for many years. The board of directors applied for a quasi-reorganization in the SEC and eventually acquired an approval on August 31, 2020. Deficit’s balance sheet on this date is presented below (SEE PICTURE BELOW):As part of the quasi-reorganization process, PPE will be reduced by P1,750,000 while other assets be decreased by P750,000. Par value of the ordinary shares will be reduced by P5 per share. How much is the balance of shareholder’s equity after the quasi-reorganization? a. P4,000,000 b. P8,000,000 c. P9,000,000 d. P5,000,000
1.The changes in account balances of ENIGMA Co. during 2020 are as follows: Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase Share premium: P9,000 increase. Assuming there are no changes in retained earnings except for net income and a dividend payment of P19,500, how much is the net income (net loss) for 2020? 2.The financial records of DISGRASYA Inc. were destroyed by fire at the end of 2020. Selected information gathered are the following: Inventory on January 1 was P92,000 and decreased by 20% during the year. Sales discount amounted to P17,000. Interest expense is P20,000. Cost of sales is P500,000. Administrative expenses amounted to 20% of cost of sales but only 8% of gross sales. Two thirds of operating expenses relate to sales activities. The company is subject to 30% income tax. How much is the net income (net loss) during 2020? Thank You!
essari, Ltd. is a calendar-year corporation. Its financial statements for the years 2020 and 2019 contained errors as follows: 2020 2019 Ending inventory $4,000 overstated $7,000 overstated Amortization expense $2,000 understated $8,000 overstated Assume that no correcting entries were made at December 31, 2019, or December 31, 2020 and that no additional errors occurred in 2020. Ignoring income taxes, by how much will working capital, at December 31, 2020 be overstated or understated? $0 $4,000 overstated $4,000 understated $3,000 understated Use the following information to answer the questions below.Shanti Inc. is a calendar-year corporation. Its financial statements for the…
21 Nissan Corporation is undergoing liquidation. On January 1, 2020 its Statement of Financial Position showed the following accounts: ASSETS LIABILITIES AND EQUITY Cash P 150,000 Salaries Payable P 85,000 Accounts Receivables-net 290,600 Accounts Payable 120,700 Inventory 50,000 Mortgages Payable 428,000 Prepaid Expenses 10,400 Loan Payable 130,000 Building 380,000 Notes Payable 84,300 Goodwill 80,000 Ordinary Shares 170,000…