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The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value $ 94,000 Fair Value $ 118,000 238,000 214,000 314,000 428,000 314,000 314,000 344,000 48,000 (84,000) Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) The company's assets have a $834,000 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 (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.) No 1 2 Transaction 1 2 Receivables Inventory Buildings Goodwill Answer is complete but not entirely correct. General Journal Additional paid-in capital Additional paid-in capital Retained earnings 33333 33 Debit 24,000✔ 24,000✔ 114,000✔ 50,000✔ 84,000✔ Credit 118,000 84,000✔

The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value $ 94,000 Fair Value $ 118,000 238,000 214,000 314,000 428,000 314,000 314,000 344,000 48,000 (84,000) Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) The company's assets have a $834,000 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 (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.) No 1 2 Transaction 1 2 Receivables Inventory Buildings Goodwill Answer is complete but not entirely correct. General Journal Additional paid-in capital Additional paid-in capital Retained earnings 33333 33 Debit 24,000✔ 24,000✔ 114,000✔ 50,000✔ 84,000✔ Credit 118,000 84,000✔

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value $ 94,000 Fair Value $ 118,000 238,000 214,000 314,000 428,000 314,000 314,000 Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) The company's assets have a $834,000 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 (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.) No 1 2 Transaction 1 344,000 48,000 (84,000) 2 Receivables Inventory Buildings Goodwill Answer is complete but not entirely correct. General Journal Additional paid-in capital Additional paid-in capital Retained earnings 333 33 >> Debit 24,000✔ 24,000✔ 114,000✔ 50,000✔ 84,000✔ Credit 118,000 X 84,000
Transcribed Image Text:The Larisa Company is exiting bankruptcy reorganization with the following accounts: Book Value $ 94,000 Fair Value $ 118,000 238,000 214,000 314,000 428,000 314,000 314,000 Receivables Inventory Buildings Liabilities Common stock Additional paid-in capital Retained earnings (deficit) The company's assets have a $834,000 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 (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.) No 1 2 Transaction 1 344,000 48,000 (84,000) 2 Receivables Inventory Buildings Goodwill Answer is complete but not entirely correct. General Journal Additional paid-in capital Additional paid-in capital Retained earnings 333 33 >> Debit 24,000✔ 24,000✔ 114,000✔ 50,000✔ 84,000✔ Credit 118,000 X 84,000
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