\begin{tabular}{|l|l|r|} \hline \multicolumn{2}{|c|}{ Balance Sheet } & \\ \hline ASSETS & & \\ \hline Current Assets: & & \\ \hline & & $ \\ \hline & & \\ \hline Land, Buildings, and Machinery: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Intangible Assets: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline LIABILITIES AND STOCKHOLDERS' EQUITY & & \\ \hline Current Liabilities: & & \\ \hline & & \\ \hline & & \\ \hline Long-term Liabilities: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Smith Corporation has gone through bankruptcy and is ready to emerge as a reorganized entity on December 31 , 2020. On this date, the company has the following assets (fair value is based on discounting the anticipated future cash flows): The company has a reorganization value of $853,000. Smith has 51,000 shares of $10 par value common stock outstanding. A deficit Retained Earnings balance of $674,000 also is reported. The owners will distribute 31,000 shares of this stock as part of the reorganization plan. The company's liabilities will be settled as follows: - Accounts payable of $203,000 (existing at the date on which the order for relief was granted) will be settled with an 8 percent, two-year note for $36,200. - Accounts payable of $97,100 (incurred since the date on which the order for relief was granted) will be paid in the regular course of business. - Note payable-First Metropolitan Bank of $205,000 will be settled with an 8 percent, five-year note for $52,800 and 15,500 shares of the stock contributed by the owners. - Note payable-Northwestern Bank of Tulsa of $352,000 will be settled with a 7 percent, eight-year note for $124,000 and 15,500 shares of the stock contributed by the owners. b. Prepare a balance sheet for Smith Corporation upon its emergence from reorganization. \begin{tabular}{|c|c|c|} \hline - & & 0 \\ \hline Total liabilities & $ & 0 \\ \hline \multicolumn{3}{|l|}{ Stockholders' Equity: } \\ \hline & & \\ \hline & & \\ \hline T & & \\ \hline & & 0 \\ \hline Total liabilities and stockholders' equity & $ & 0 \\ \hline \end{tabular}