Wayne Corporation, a manufacturer of farm machinery, had poor financial results last year because of a drought. Back orders indicate complete recovery this year. To eliminate a deficit that increased when the books were closed at the end of last year, the corporation has received stockholders' and state approval to conduct a quasi-reorganization on January 2.
Required:
Prepare journal entries as of January 2 to record the quasi-reorganization and the stockholders' equity section of its balance sheet immediately thereafter. The following data are pertinent:

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The Answer of Wayne Corporation, a manufacturer of farm machinery, had poor financial results last year because of a drought. Back orders indicate complete recovery this year. To eliminate a deficit that increased when the books were closed at the end of last year, the corporation has received stockholders' and state approval to conduct a quasi-reorganization on January 2.
Required:
Prepare journal entries as of January 2 to record the quasi-reorganization and the stockholders' equity section of its balance sheet immediately thereafter. The following data are pertinent:

Wayne Corporation, a Manufacturer of Farm Machinery, Had Poor Financial