Dresser Industries' Balance Sheet Is as Follows The Company Enters into a Quasi-Reorganization, and Takes the Following

Dresser Industries' balance sheet is as follows:
$$\begin{array} { | l | r | l | c | } \hline \text { Assets } & & \text { Liabilities and Equity } & \\\hline \text { Cash } & \$ 100,000 & \text { Accounts payable } & \$ 700,000 \\\hline \text { Receivables } & 500,000 & \text { Long term liabilities } & 1,200,000 \\\hline \text { Merchandise } & 800,000 & \text { Common stock, \$2 par } & 1,000,000 \\\hline \text { Property, net } & 2,000,000 & \text { Additional paid-in capital } & 800,000 \\\hline & & \text { Retained earnings } & \underline { ( 300,000 ) } \\\hline \text { Total } & \$ 3,400,000 & \text { Total } & \$ 3,400,000 \\\hline\end{array}$$ The company enters into a quasi-reorganization, and takes the following steps:
1) Assets are written down to fair value as follows:
$$\begin{array} { | l | r | } \hline & { \text { Fair Value } } \\\hline \text { Receivables } & \$ 400,000 \\\hline \text { Merchandise } & 700,000 \\\hline \text { Property } & 1,200,000 \\\hline\end{array}$$ 2) The par value of the common stock is reduced to $1/share.
Required
a. Prepare the journal entries necessary to accomplish the quasi-reorganization.
b. Present the balance sheet immediately following the quasi-reorganization.