Tsui Corporation went through a financial reorganization by writing down plant assets by $107,000 and eliminating its deficit, which was $182,000 before the reorganization. As part of the reorganization, the creditors agreed to take back 55% of the common shares in lieu of payment of the debt of $1.8 million. Prepare the entries to record the financial reorganization assuming that Tsui follows private enterprise GAAP.
Answer to relevant QuestionsSportage Limited issued 2,000 shares of no par value common shares for $58,300. Prepare Sportage’s journal entry if (a). The stock has no par value, and (b). The stock has a par value of $13 per share. Roberts Corporation has 50,000 common shares outstanding, with an average value of $8 per share. On August 1, 2012, the company reacquired and cancelled 600 shares at $40 per share. There was Contributed Surplus of $0.25 per ...Falkon Corp. reported the following amounts in the shareholders’ equity section of its December 31, 2011 balance sheet: Preferred shares, $8 dividend (10,000 shares authorized, 2,000 shares issued) ...Radford Corporation’s charter authorized 1 million shares of $11 par value common shares, and 300,000 shares of 6% cumulative and non-participating preferred shares, with a par value of $100 per share. The corporation ...Some of the account balances of Vos Limited at December 31, 2010, are as follows: $6 Preferred shares (no par, 2,000 shares authorized, 2,000 shares issued and outstanding) $520,000 Common shares (no par, ...
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