A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, 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 $124 million and increasing land by $5 million. Immediately prior to the restatement, at December 31, 2018, Champion Chemical Corporation’s balance sheet appeared as follows (in condensed form):
3.
Import a new list Record revaluation of inventory. Record revaluation of land. Record the entry to eliminate a portion of deficit against 1 2 3 available additional paid in capital. Record the entry to eliminate the remainder of the 4 deficit against common stock.
Prepare a balance sheet as it would appear immediately after the restatement. (Enter your answers in millions (i.e. 10,000,000 should be entered as 10).) CHAMPION CHEMICAL CORPORATION Balance Sheet January 1, 2019 Assets Current Assets: Total Current Assets Total Assets Liabilities and stockholders' equity Stockholders' Equity: Paid-in capital-excess of par Retained earnings (deficit) Total Stockholders' Equity Total Liabilities and Stockholders' Equity
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A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, but confidence was emerging that better times were ahead. The b...
A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endu...
A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, 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 $122 million and increasing land by $5 million. Immediately prior to the restatement, at December 31, 2018, Champion Chemical Corporation's balance sheet appeared as follows (in condensed form) CHAMPION...
Quasi-Reorganization The Hassani Corporation has the following balance sheet: Current assets $ 700,000 Current liabil...
Quasi-Reorganization The Hassani Corporation has the following balance sheet: Current assets $ 700,000 Current liabilities $ 600,000 Noncurrent assets 3,600,000 Long-term liabilities 2,950,000 Common stock ($10 par) 1,700,000 Retained earnings (950,000) Total assets $4,300,000 Total liabilities and equity $4,300,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not adequately reflect the reduced earning power of the assets. To give its balance sheet a better basis for future profitability, the company decides to...
I would just like to know if i'm correct before submitting. Problem 2-P15.14 Please solve this...
I would just like to know if i'm correct before submitting.
Problem 2-P15.14 Please solve this problem below. Quasi-Reorganization: The Hassani Corporation has the following balance sheet: Current assets Noncurrent assets $500,000 $4,000,000 Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liabilites & Equity $400,000 $2,800,000 $2,500,000 -1,200,000 $4,500,000 Total assets $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not adequately reflect the reduced earning power of the assets. To...
On January 1, 2020, Crane Corporation had the following stockholders’ equity accounts. Common Stock (no par...
On January 1, 2020, Crane Corporation had the following
stockholders’ equity accounts.
Common Stock (no par value, 91,000 shares issued and
outstanding)
$1,385,000
Retained Earnings
546,000
During the year, the following transactions occurred.
Feb. 1
Declared a $1 cash dividend per share to stockholders of record
on February 15, payable March 1.
Mar. 1
Paid the dividend declared in February.
Apr. 1
Announced a 3-for-1 stock split. Prior to the split, the market
price per share was $37.
July 1...
Exercise 5-12 Presented below is the trial balance of Nash Corporation at December 31, 2020. Debit...
Exercise 5-12 Presented below is the trial balance of Nash Corporation at December 31, 2020. Debit Credit Cash $ 199,800 $ 8,102,570 Sales Debt Investments (trading) (at cost, $145,000) Cost of Goods Sold Debt Investments (long-term) Equity Investments (long-term) Notes Payable (short-term) Accounts Payable Selling Expenses Investment Revenue 155,570 4,800,000 301,800 279,800 92,570 457,570 2,002,570 64,380 Land 262,570 1,042,800 Buildings Dividends Payable Accrued Liabilities 138,800 98,570 Accounts Receivable 437,570 152,000 27,570 Accumulated Depreciation-Buildings Allowance for Doubtful Accounts Administrative Expenses Interest...
Problem 11-03A (Part 2) On December 31, 2021, Cullumber Company had 1,290,000 shares of $6 par...
Problem 11-03A (Part 2)
On December 31, 2021, Cullumber Company had 1,290,000 shares of
$6 par common stock issued and outstanding. At December 31, 2021,
stockholders’ equity had the amounts listed here.
Common Stock
$7,740,000
Additional Paid-in Capital
1,760,000
Retained Earnings
1,235,000
Transactions during 2022 and other information related to
stockholders’ equity accounts were as follows.
1.
On January 10, issued at $106 per
share 125,000 shares of $104 par value, 8% cumulative preferred
stock.
2.
On February 8, reacquired...
On May 1, Burns Corporation acquired 100 percent of the outstanding ownership shares of Quigley Corporation...
On May 1, Burns Corporation acquired 100 percent of the outstanding ownership shares of Quigley Corporation in exchange for $710,000 cash. At the acquisition date, Quigley's book and fair values were as follows: Cash Receivables Inventory Land Building and equipment (net) Patented technology Total assets Accounts payable Long-term liabilities Common stock ($5 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders equity Book Value Fair Value $ 95,000 $ 95,000 200,000 200,000 210,000 260,000 130,000 110,000 270,000 330,000...
A) 1.85 B) 1.80 C) 2.54 D) 1.75 Mayfield Corporation has provided the following financial data:...
A) 1.85
B) 1.80
C) 2.54
D) 1.75
Mayfield Corporation has provided the following financial data: Balance Sheet Assets Current assets: Cash 243,000 Accounts receivable, net 256,000 Inventory 210,000 Prepaid expenses 14,000 Total current assets 723,000 Plant and equipment, net 685,000 $1,408,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $180,000 Accrued liabilities 56,000 Notes payable, short term 49,000 Total current liabilities 285,000 Bonds payable 108,000 393,000 Total liabilities Stockholders' equity: Common stock, $4 par value Additional paid-in...
A B D E Venus Corporation purchases 70% of the common stock of Starnes Company for...
A B D E Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) $ $ $ $ $ Liabilities and Equity 110,000 Accounts Payable $ 200,000 Bonds Payable $ 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) $ 210,000 Paid-in Capital in excess of par $ Retained...
Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure...
Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure an uninterrupted supply of key raw materials and to realize certain economies from combining the operating processes and the marketing efforts of the two companies. Under the terms of the agreement, Pintime issued 181,100 shares of its $2 par common stock in exchange for all of SCC’s assets and liabilities. The Pintime shares then were distributed to SCC’s shareholders, and SCC was liquidated. Immediately...
A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, 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 $122 million and increasing land by $5 million. Immediately prior to the restatement, at December 31, 2018, Champion Chemical Corporation's balance sheet appeared as follows (in condensed form) CHAMPION...
I would just like to know if i'm correct before submitting.
Problem 2-P15.14 Please solve this problem below. Quasi-Reorganization: The Hassani Corporation has the following balance sheet: Current assets Noncurrent assets $500,000 $4,000,000 Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liabilites & Equity $400,000 $2,800,000 $2,500,000 -1,200,000 $4,500,000 Total assets $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not adequately reflect the reduced earning power of the assets. To...
On January 1, 2020, Crane Corporation had the following
stockholders’ equity accounts.
Common Stock (no par value, 91,000 shares issued and
outstanding)
$1,385,000
Retained Earnings
546,000
During the year, the following transactions occurred.
Feb. 1
Declared a $1 cash dividend per share to stockholders of record
on February 15, payable March 1.
Mar. 1
Paid the dividend declared in February.
Apr. 1
Announced a 3-for-1 stock split. Prior to the split, the market
price per share was $37.
July 1...
Exercise 5-12 Presented below is the trial balance of Nash Corporation at December 31, 2020. Debit Credit Cash $ 199,800 $ 8,102,570 Sales Debt Investments (trading) (at cost, $145,000) Cost of Goods Sold Debt Investments (long-term) Equity Investments (long-term) Notes Payable (short-term) Accounts Payable Selling Expenses Investment Revenue 155,570 4,800,000 301,800 279,800 92,570 457,570 2,002,570 64,380 Land 262,570 1,042,800 Buildings Dividends Payable Accrued Liabilities 138,800 98,570 Accounts Receivable 437,570 152,000 27,570 Accumulated Depreciation-Buildings Allowance for Doubtful Accounts Administrative Expenses Interest...
Problem 11-03A (Part 2)
On December 31, 2021, Cullumber Company had 1,290,000 shares of
$6 par common stock issued and outstanding. At December 31, 2021,
stockholders’ equity had the amounts listed here.
Common Stock
$7,740,000
Additional Paid-in Capital
1,760,000
Retained Earnings
1,235,000
Transactions during 2022 and other information related to
stockholders’ equity accounts were as follows.
1.
On January 10, issued at $106 per
share 125,000 shares of $104 par value, 8% cumulative preferred
stock.
2.
On February 8, reacquired...
On May 1, Burns Corporation acquired 100 percent of the outstanding ownership shares of Quigley Corporation in exchange for $710,000 cash. At the acquisition date, Quigley's book and fair values were as follows: Cash Receivables Inventory Land Building and equipment (net) Patented technology Total assets Accounts payable Long-term liabilities Common stock ($5 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders equity Book Value Fair Value $ 95,000 $ 95,000 200,000 200,000 210,000 260,000 130,000 110,000 270,000 330,000...
A) 1.85
B) 1.80
C) 2.54
D) 1.75
Mayfield Corporation has provided the following financial data: Balance Sheet Assets Current assets: Cash 243,000 Accounts receivable, net 256,000 Inventory 210,000 Prepaid expenses 14,000 Total current assets 723,000 Plant and equipment, net 685,000 $1,408,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $180,000 Accrued liabilities 56,000 Notes payable, short term 49,000 Total current liabilities 285,000 Bonds payable 108,000 393,000 Total liabilities Stockholders' equity: Common stock, $4 par value Additional paid-in...
A B D E Venus Corporation purchases 70% of the common stock of Starnes Company for $700,000. At the time of purchase, Starnes has the following balance sheet: Starnes Company Balance Sheet December 31, 2019 90,000 300,000 Assets Cash equivalents Inventory Land Building (net) Equipment (net) $ $ $ $ $ Liabilities and Equity 110,000 Accounts Payable $ 200,000 Bonds Payable $ 80,000 Stockholder's Equity 400,000 Common Stock ($5 par) $ 210,000 Paid-in Capital in excess of par $ Retained...
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