Journal entries | |||||
Particulars | Debit | Credit | |||
Retained earning | 122000000 | ||||
inventory | 122000000 | ||||
(to record revaluation) | |||||
Land | 5000000 | ||||
Retained earning | 5000000 | ||||
(to record revaluation) | |||||
additional paid in capital | 65000000 | ||||
retained earning | 65000000 | ||||
(to record elimination of deficit) | |||||
Common stock | 252000000 | ||||
retained earining | 252000000 | ||||
(to record elimination of deficit) | |||||
Total deficit | |||||
retained earning (debit balance) | 200000000 | ||||
decreace in the inventory value | 122000000 | ||||
increase in land value | -5000000 | ||||
Total deficit | 317000000 | ||||
less: elinimated from additional paid in capital | -65000000 | ||||
decficit eliminated from common stock | 252000000 | ||||
Balance Sheet | |||||
Assets | Amount | Amount | |||
Cash | 23000000 | ||||
Receviables | 50000000 | ||||
Inventory | 230000000 | ||||
less: Revaluation | -122000000 | 108000000 | |||
Land | 50000000 | ||||
Add: Revaluation | 5000000 | 55000000 | |||
Building & equipment | 100000000 | ||||
Total assets | 336000000 | ||||
Laibilties & shareholder's equity | |||||
Laibilities | 252000000 | ||||
Common stock (336000000*0.25) | 84000000 | ||||
Total Laibilities & shareholder's equity | 336000000 | ||||
Par value of common stock = 336000000-252000000/336000000 | |||||
par value of common stock = 0.25 |
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