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A new CEO was hired to revive the floundering Heirloom Watch 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 $213 million and increasing land by $10 million. Immediately before the restatement, at December 31, 2021, Heirloom Watch Corporation's balance sheet appeared as follows (in condensed forms: Heirloom Watch Corporation Balance Sheet At December 31, 2021 (s in millions) Cash Receivables Inventory Land Buildings and equipment (net) $ 846 S483 640 Liabilities Common stock (640 million shares at Additional paid-in capital Retained earnings (deficit) 123 (400) $ 846 Required: 1. Prepare the journal entries appropriate to record the quasi-reorganization on January 1, 2022 2. Prepare a balance sheet as it would appear immediately after the restatement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries appropriate to record the quasi-reorganization on January 1, 2022. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions (e., 10,000,000 should be entered as 10).) View transaction list

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