1) The balance sheet accounts of John Company on the date it is allowed to effect a quasi-reorganization follows: Current asset 3,100,000 Property & equipment (net) 9,300,000 Liabilities 6,200,000 Share capital, par P100 7,750,000 Retained earnings (Deficit) (1,550,000) The quasi-reorganization is to be accomplished as follows: property and equipment will be reduced to current value of) 3,975,000, share capital will be reduced to par value of P50 per share: and the resulting deficit balance will be absorbed by the reduction of the share capital. The total shareholders' equity immediately after the quasi-reorganization is a ) 6,200,000 b) 3,875,000 c) 7,750,000 d) 5,425,000 e) Answer not given2.) John Co. has incurred losses from operations for many years. At the recommendation of the newly hired president, the board of directors voted to implement a quasi-reorganization on June 30, 2015. The balance sheet is shown below: Current assets 2,200,000 Liabilities 2,400,000 Property & equipment 5,400,000 Ordinary shares, par P10 6,400,000 Other assets 800,000 Share premium 1,200,000 Deficit (1,600,000) Total 8,400,000 8,400,000 The shareholder approved the quasi-organization to be accomplished by a reduction in property & equipment of P1, 400,000, a reduction in their assets of P600, 000 and a reduction in par value by P5 per share. a) 4,800,000 b) 4,000,000 c) 6,400,000 d) 7,600,000 e) Answer not given