The Larisa Company is exiting bankruptcy reorganization with the following account balances:   Net Book Value Fair Value Receivables $ 100,000 $ 130,000 Inventory 220,000 250,000 Buildings 320,000 440,000 Liabilities 820,000 820,000 Common stock 150,000   Additional paid-in capital 60,000   Retained earnings (deficit) (390,000)   Larisa Company’s assets have a $870,000 reorganization value. As part of the reorganization plan, the company’s owners transferred 80 percent of the outstanding stock to the creditors in exchange for a $500,000 reduction in the liabilities. Required: Prepare the journal entry (or entries) necessary to adjust the company’s records to fresh start accounting. Journal entry worksheet         Note: Enter debits before credits.         Transaction General Journal Debit Credit 1                                                                       these are the differnt lables please choose from these  No journal entry required Additional paid-in capital Buildings Common stock Goodwill Inventory Liabilities Receivables Retained earnings

D

please answer do not image.

The Larisa Company is exiting bankruptcy reorganization with the following accounts:   Book Value Fair Value Receivables $80000 $90000 Inventory 200000 210000 Buildings 300000 400000 Liabilities 300000 300000 Common stock 330000   Additional paid-in capital 20000   Retained earnings (deficit) (70000)   The company’s assets have a $760,000 reorganization value. As part of the reorganization, the company’s owners transferred 80 percent of the outstanding stock to the creditors.Prepare the journal entry that is necessary to adjust the company’s records to fresh start accounting.

Africa Company recently filed for bankruptcy. Immediately before liquidation. Africa Co. had the following statement of financial position Cash Investments at FVPL Accounts receivable Inventory Total P50,000 Accounts payable P650,000 150,000 Contributed capital 500,000 300,000 Retained eamings (150,000) 500,000 P1,000,000 Total P1,000,000 Africa had the following transactions in relation to its liquidation process • Sale of inventory amounted to P300,000. P50.000 was on account with the remainder on cash basis. The cost of merchandise sold amounted to P315,000. • Collections of receivables. P115.000. Purchase of additional inventory on account. P15,000. Paid suppliers, P350,000 Sold its investment at FVPL for P186500. including accrued interest of P1,500. Paid expenses of the trustee. P75.000. Unpaid expenses incurred amounted to P3500 Wrote-off P15.000 of its accounts receivables Required 1. How much is the net loss during the liquidation process?

The Larisa Company is exiting bankruptcy reorganization with the following accounts: The company’s assets have a $760,000 reorganization value. As part of the reorganization, the company’s owners transferred 80 percent of the outstanding stock to the creditors. Prepare the journal entry that is necessary to adjust the company’s records to fresh start accounting.

Mannheim Corporation is ready to emerge from Chapter 11 bankruptcy under a reorganization plan accepted by all parties. Mannheim's balance sheet shows Vanous avsets $2,600 000 TOTAL Select one O Prepetition labies fully secured Prepetition ablities subject to comprome Potpetition abiles $2.500.000 TOTAL a $250,000 b. 178,000 Common stock Retained deficit There are no excess assets. The present value of future cash flows from the reorganized company's operating assets is $2.470,000 The creditors represented by the prepetition liabilities subject to compromise agree to take $754,000 in 7 percent notes payable plus 70 percent of the common stock as settlement. The old shareholders will have 30 percent of the common stock. The reorganized company's common stock is valued at $130,000 d$650.000 $520,000 1,768,000 1,066.000 260.000 (1014000) $2600000

Ma  Mannheim Corporation is ready to emerge from Chapter 11 bankruptcy under a reorganization plan accepted by all parties. Mannheim's balance sheet shows: Various assets $2,000,000 Prepetition liabilities, fully secured $400,000     Prepetition liabilities subject to compromise 1,360,000     Postpetition liabilities 820,000     Common stock 200,000     Retained deficit (780,000) TOTAL $2,000,000 TOTAL $2,000,000   There are no excess assets. The present value of future cash flows from the reorganized company's operating assets is $1,900,000 The creditors represented by the prepetition liabilities subject to compromise agree to take $580,000 in 7 percent notes payable plus 70 percent of the common stock as settlement. The old shareholders will have 30 percent of the common stock. After reorganization, Mannheim's retained earnings balance is Select one: a. $150,000 b. $(70,000) c. $500,000 d. $0.

Pitch Co. is undergoing liquidation. Information on Pitch Co. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 500,000 300,000 1,280,000 1,600,000 3,100,000 Free assets 2,880,000 LIABILITIES 400,000 480,000 Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 1,000,000 1,050,000 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 2. How much can the "partially secured creditors" expect to recover from their claims? а. 432,000 b. 445,600 c. 510,000 d. 548,000

Pitch Co. is undergoing liquidation. Infórmation on Pitch Co.. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 500,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 300,000 1,600,000 1,280,000 Free assets 3,100,000 2,880,000 LIABILITIES Unsecured liabilities with priority 400,000 480,000 1,000,000 1,050,000 Fully secured creditors Partially secured creditors Unsecured creditors without priority 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 1. What is the estimated recovery percentage of unsecured creditors without priority? а. 60% b. 75% с. 78% d. 80%