Problem 2-P15.14 Please solve this problem below. Quasi-Reorganization: The Hassani Corporation has the following balance sheet: Current assets Noncurrent assets $500,000 $4,000,000 Current Liabilities Long-term liabilities Common Stock Retained Earnings Total Liabilites & Equity $400,000 $2,800,000 $2,500,000 -1,200,000 $4,500,000 Total assets $4,500,000 Company profitability has been marginal, in part due to book values of noncurrent assets that do not adequately reflect the reduced earning power of the assets. To give its balance sheet a better basis for future profitability, the company decides to undertake a quasi-reorganization. Hassani writes down noncurrent assets to their fair alue of $3,000,000 and replaces the current no-par common stock with 100,000 shares of a new issue having a $1 par value. Required: a. Prepare journal entries to record the quasi-reorganization. b. Prepare a balance sheet following the quasi-reorganiztion. a. Prepare journal entries to record the quasi-reorganization b. Prepare a balance sheet following the quasi-reorganiztio Account Retained earnings Noncurrent assets Debit $ 100,000 $ 2,500,000 Common stock ($10 par) Common stock ($1 par) Additional paid in capital Credit Hassani Corporation Balance Sheet $ 100,000 Current assets $ 500.000 Non current assets $3,000,000 $3,500,000 $ 100,000 Current liabilities $ 400,000 $ 2,400,000 Long-term liabilities $2,800,000 Common stock ($1 par) $ 100,000 Additional paid in capital $ 200,000 $ 2.200,000 Retained earnings since (date) $3,500,000 $ 2,200,000 Additional Paid in capital Retained earnings