2-28. The Skinny Red Company has a deficit in retained earnings of P1,000,000. Business appears to be turning around, so the president wants the company to go through a quasi- reorganization. The statement of financial position of the company prior to the reorganization contains the following information: Current assets P 500,000 Land 1,500,000 Buildings 5,000,000 Liabilities 1,000,000 Accumulated depreciation 1,000,000 Ordinary share capital, P20 par value 6,000,000 Retained earnings (Deficit) (1,000,000) 156 Chapter 2 - Shareholders' Equity As part of the quasi-reorganization, the current assets and buildings are to be written down by P100,000 and P300,000, respectively. Ordinary share capital is to be exchanged and will be restated at a legal capital of P4,000,000. The resulting additional paid in capital will be used to cancel the resulting deficit. REQUIRED: (a) (b) Journal entries to record the quasi-reorganization. A statement of financial position immediately after the quasi-reorganization