Required 11. Record revaluation of inventory.2. Record revaluation of land.3. Record the entry to eliminate a portion of deficit against available additional paid in capital.4. Record the entry to eliminate the remainder of the deficit against common stock.Required 2 Prepare a balance sheet as it would appear immediately after the restatement.Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Required 1 Required 2Prepare a balance sheet as it would appear immediately after the restatement.Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).AssetsHEIRLOOM WATCH CORPORATIONBalance SheetAt January 1, 2025($ in millions)Total assetsLiabilities and stockholders' equityLiabilitiesTotal Liabilities and Stockholders' Equity< Required 1Required 2 > A new CEO was hired to revive the floundering Heirloom Watch Corporation. The company had endured operating losses for severalyears, but confidence was emerging that better times were ahead. The board of directors and shareholders approved a quasi-reorganization for the corporation. The reorganization included devaluing inventory for obsolescence by $219 million and increasingland by $10 million. Immediately before the restatement, on December 31, 2024, Heirloom Watch Corporation's balance sheetappeared as follows (in condensed form):CashReceivablesInventoryLandBuildings and equipment (net)LiabilitiesCommon stock (640 million shares at $1 par)Additional paid-in capitalRetained earnings (deficit)Required:1. Prepare the journal entries appropriate to record the quasi-reorganization on January 1, 2025.2. Prepare a balance sheet as it would appear immediately after the restatement.Heirloom Watch CorporationBalance SheetOn December 31, 2024($ in millions)Complete this question by entering your answers in the tabs below.Required 1 Required 2View transaction listPrepare the journal entries appropriate to record the quasi-reorganization on January 1, 2025.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers inmillions (i.e., 10,000,000 should be entered as 10).Journal entry worksheet<12Note: Enter3$ 498946989162$858$ 489640129(400)$ 858Record revaluation of inventory.4fore anedito>

Journal Entry is the primary step to record the transaction in the books of accounts. The balance…

Answered: Required 1 1. Record revaluation of…

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 19E