The following account balances are available from the ledger of Yutao Shui Corporation on December 31, 2013:

Question:

The following account balances are available from the ledger of Yutao Shui Corporation on December 31, 2013:
Common Shares (20,000 shares authorized and outstanding) ............... $1,000,000
Retained Earnings (deficit) ......................................................... (190,000)
On January 2, 2014, the corporation put into effect a shareholder-approved reorganization by agreeing to pass the common shares over to the creditors in full payment of the $260,000 Notes Payable, writing up Buildings by $135,600, and eliminating the deficit. Assume that Yutao Shui follows ASPE.
Instructions
Prepare the required journal entries for the financial reorganization of Yutao Shui Corporation.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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