(a)Prepare the journal entries to record the reorganization.
(b)Prepare a balance sheet after the reorganization.

 

 

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The trial balance of Sussex Inc. as at December 31, Year 6, is as follows: Debit Cash Accounts receivable Allowance for doubtful accounts Inventory Property, plant, and equipment Accumulated depreciation Patents Accounts payable Notes payable (10% interest) Accrued interest on notes 12% bonds payable Common stock (9,000 shares) Retained earnings (deficit) S 45,000 95,000 150,000 540,000 120,000 178,000 $1,128,000 Credit 18,000 210,000 110,000 150,000 40,000 400,000 200,000 $1,128,000 The trial balance of Sussex Inc. as at December 31, Year 6, is as follows: Debit Cash Accounts receivable Allowance for doubtful accounts Inventory Property, plant, and equipment Accumulated depreciation Patents Accounts payable Notes payable (10% interest) Accrued interest on notes 12% bonds payable Common stock (9,000 shares) Retained earnings (deficit) S 45,000 95,000 150,000 540,000 120,000 178,000 $1,128,000 Credit 18,000 210,000 110,000 150,000 40,000 400,000 200,000 $1,128,000

Answer rating: 100% (QA)

ANSWER Journal Entries Account Debit Credit Liquidation of Patents Patents Accum Dep Loss on Liqui... View the full answer