Current Assets P 1,375,000Property, plant and equipment 3,375,000Other non-current assets 500,000Total Assets P 5,250,000 Liabilities and Shareholders’ equity  Total liabilities P 1,500,000O

Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 62BE: Brief ExerciseRatio Analysis Valiant Corporation has $1,800,000 in total liabilities, $800,000 of...
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Current Assets P 1,375,000Property, plant and equipment 3,375,000Other non-current assets 500,000Total Assets P 5,250,000
Liabilities and Shareholders’ equity
 Total liabilities P 1,500,000Ordinary shares, P10 par value 4,000,000Additional paid in capital 750,000Deficit (1,000,000)Total liabilities and equity P 5,250,000The stockholders and creditors approved the quasi reorganization effective July 1,2011, to be accomplishedby a reduction in property, plant and equipment (net) P 875,000, a reduction in other non-current assets ofP375,000, and a reduction in par value from P10 to P51.
 
Logan’s July 1 balan
ce sheet after the quasi-reorganization should show total assets ofa.
 
P 4,000,000b.
 
P 2,500,000c.
 
P 4,375,000d.
 
P 3,875,0002.
 
The balance in additional paid in capital after the quasi-reorganization on July 1 is:a.
 
P 750,000b.
 
P 2,000,000c.
 
P 500,000d.
 
P-0-3.
 
Logan’s deficit after the quasi
-reorganization on July 1,2011 should be:a.
 
P 750,000b.
 
P 250,000c.
 
P 500,000d.
 
P -0-
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