Among the provisions of the plan of reorganization confirmed by the bankruptcy court for Weibel Company were the following:
a. Amend articles of incorporation to authorize 10,000 shares of 12%, $1 par preferred stock and 15,000 shares of new $2 par common stock. 10,000 shares of the new common stock were to be exchanged on a share-for-share basis for all 10,000 shares of the $100 par common stock currently outstanding.
b. Exchange 5,000 shares of the $1 par, 12% preferred stock (at a current fair value of $10 a share) to creditors for trade accounts payable totaling $52,000.
c. Pay 80 cents on the dollar for trade accounts payable totaling $62,700.
Prepare journal entries for Weibel Company to record the completion of the foregoing provisions of the Chapter 11 bankruptcy reorganization. Omit explanations.

Question

Among the provisions of the plan of reorganization confirmed by the bankruptcy court for Weibel Company were the following:
  a. Amend articles of incorporation to authorize 10,000 shares of 12%, $1 par preferred stock and 15,000 shares of new $2 par common stock. 10,000 shares of the new common stock were to be exchanged on a share-for-share basis for all 10,000 shares of the $100 par common stock currently outstanding.
b. Exchange 5,000 shares of the $1 par, 12% preferred stock (at a current fair value of $10 a share) to creditors for trade accounts payable totaling $52,000.
c. Pay 80 cents on the dollar for trade accounts payable totaling $62,700.
Prepare journal entries for Weibel Company to record the completion of the foregoing provisions of the Chapter 11 bankruptcy reorganization. Omit explanations.

Quizplus · Accepted Answer

The Answer of Among the provisions of the plan of reorganization confirmed by the bankruptcy court for Weibel Company were the following:
  a. Amend articles of incorporation to authorize 10,000 shares of 12%, $1 par preferred stock and 15,000 shares of new $2 par common stock. 10,000 shares of the new common stock were to be exchanged on a share-for-share basis for all 10,000 shares of the $100 par common stock currently outstanding.
b. Exchange 5,000 shares of the $1 par, 12% preferred stock (at a current fair value of $10 a share) to creditors for trade accounts payable totaling $52,000.
c. Pay 80 cents on the dollar for trade accounts payable totaling $62,700.
Prepare journal entries for Weibel Company to record the completion of the foregoing provisions of the Chapter 11 bankruptcy reorganization. Omit explanations.

Among the Provisions of the Plan of Reorganization Confirmed by the Bankruptcy