The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value Fair Value $ 99,000 $128,000 219,000 Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) 248,000 438,000 319,000 319,000 319,000 349,000 58,000 (89,000) The company's assets have a $869,000 reorganization value. As part of the reorganization, the company's owners transferred 75 percent of the outstanding stock to the creditors. Prepare the journal entry (or entries) necessary to adjust the company's records to fresh start accounting. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Claim against assets are represented by__.I am not satisfy give downvote A. saved earning B. retained earnings C. maintained earnings D.saving account earning

Identify the statement below that is correct: Multiple Choice Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts. The left side of a T-account is the credit side. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts. The total amount debited need not equal the total amount credited for a particular transaction. The left side of a T-account is the debit side.

If an asset account is credited, it indicates O An error. An increase in the asset. O A decrease in the asset. O A credit was made to a liability account.

Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used once, more than once, or not at all. Recorded when the performance obligation is satisfied. a. Revenue recognition principle V The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle Entity assumed to have a long life d. Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle v Information has predictive and confirmatory value. T. Relevance characteristic 8. Consistency characteristic

Adjusting entries are necessary to   1. obtain a proper matching of revenue and expense.   2. achieve an accurate statement of assets and equities.   3. adjust assets and liabilities to their fair market value.     A. 1 and 2   B. 1   C. 3   D. 2

7. Net Working Capital is the difference between Current Assets andLong-Term Liabilities. T/F 8. APR takes into consideration compounding, whereas EAR does notfactor in compounding. T/F