A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, but confidence was emerging that better times were ahead. The board of directors and shareholders approved a quasi reorganization for the corporation. The reorganization included devaluing inventory for obsolescence by $115 million and increasing land by $5 million. Immediately prior to the restatement, at December 31, 2018, Champion Chemical Corporation's balance sheet appeared as follows (in condensed form) CHAMPION CHEMICAL CORPORATION Balance Sheet At December 31, 2018 ($ in millions) $ 22 Cash Receivables 60 270 Inventory Land 62 108 Buildings and equipment (net) 522 Liabilities $ 309 Common stock (412 million shares at $1 par) Paid-in capital-excess of par Retained earnings (deficit) 412 100 (299) $ 522 Required 1. Prepare the journal entries appropriate to record the quasi reorganization on January 1, 2019 2. Prepare a balance sheet as it would appear immediately after the restatement. CHAMPION CHEMICAL CORPORATION Balance Sheet January 1, 2019 Assets Current Assets: Total Current Assets Total Assets Liabilities and stockholders' equity Stockholders' Equity: Paid-in capita-excess of par Retained earnings (deficit) Total Stockholders' Equity Total Liabilities and Stockholders' Equity