A company that was to be liquidated hadthe following liabilities:Income TaxesNotes Payable secured by landAccounts Payable$ 15,000120,00048,000Salaries Payable ($18,000 for Employee#1 and$5,000 for Employee #2)Administrative expenses for liquidationThe company had the following assets:23,000Current AssetsLandBuildingSaved25,000BookFairValueValue$130,000$115,00060,000100,000175,000220,000Total liabilities with priority are calculated to be what amount?Multiple ChoiceО$106,650.$38,000. Total liabilities with priority are calculated to be what amount?Multiple Choice$106,650.$38,000.О$111,000.$63,000.$58,650.Saved

LiquidationIn order to raise money, a corporation will typically liquidate its inventory by selling…

A company that was to be liquidated had the following liabilities: Income Taxes Notes Payable secured by land Accounts Payable Salaries Payable ($18,000 for Employee #1 and $5,000 for Employee #2) Administrative expenses for liquidation The company had the following assets: Current Assets Land Building Saved $ 15,000 120,000 48,000 23,000 25,000 Book Fair Value Value $130,000 $115,000 60,000 100,000 175,000 220,000 Total liabilities with priority are calculated to be what amount? Multiple Choice О $106,650.

A company that was to be liquidated had the following liabilities: Income Taxes Notes Payable secured by land Accounts Payable Salaries Payable ($18,000 for Employee #1 and $5,000 for Employee #2) Administrative expenses for liquidation The company had the following assets: Current Assets Land Building Saved $ 15,000 120,000 48,000 23,000 25,000 Book Fair Value Value $130,000 $115,000 60,000 100,000 175,000 220,000 Total liabilities with priority are calculated to be what amount? Multiple Choice О $106,650.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company that was to be liquidated had the following liabilities: $ 10,400 Income taxes Notes payable (secured by land) Accounts payable 156,000 $107,900 Salaries payable to employees ($16,000 for John Jay and $2,800 for Ann Still) Bonds payable Administrative expenses for liquidation 18,800 81,000 26,000 The company had the following assets: Вook Fair Value value Current assets $104,000 $ 42,900 130,000 Land 117,000 Buildings & 130,000 143,000 equipment Prepare a schedule to show the amount of total unsecured non-priority liabilities. Short Answer Toolbar navigation BI U S : : E E E V
A company that was to be liquidated had the following liabilities: $ 10,400 Income taxes Notes payable (secured by land) Accounts payable Salaries payable to employees ($16,000 for John Jay and $2,800 for Ann Still) Bonds payable Administrative expenses for liquidation 156,000 $107,900 18,800 81,000 26,000 The company had the following assets: Вook Fair Value Value Current assets $104,000 $ 42,900 130,000 Land 117,000 Buildings & equipment 130,000 143,000 Prepare a schedule to show the amount of total liabilities with priority. Short Answer Toolbar navigation BI U S : : E a E V A
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A company that was to be liquidated had the following liabilities: Income taxes $ 10,400 Notes payable (secured by land) Accounts payable 156,000 $107,900 Salaries payable to employees ($16,000 for John Jay and $2,800 for Ann Still) Bonds payable Administrative expenses for liquidation 18,800 81,000 26,000 The company had the following assets: Вook Fair Value Value $104,000 $ 42,900 130,000 Current assets Land 117,000 Buildings & equipment 130,000 143,000 Prepare a schedule to show the amount of total assets available to pay liabilities with priority and unsecured creditors. Short Answer Toolbar navigation BI U S : : > !!!
Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarryingAmountNet RealizableValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarryingAmountSettlementAmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. What is the amount paid to unsecured creditors without priority? 2. What is the amount paid to partially secured creditors?
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A company that was to be liquidated hadthe following liabilities: Income Taxes $ 15,000 Notes Payable secured by land 120,000 Accounts Payable 48,000 Salaries Payable ($18,000 for Employee #1 and$5,000 for Employee #2) 23,000 Administrative expenses for liquidation 25,000 The company had the following assets: Book Value Fair Value Current Assets $ 130,000 $115,000 Land 60,000 100,000 Building 175,000 220,000 Total liabilities with priority are calculated to be what amount?
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Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable. QUESTIONS: 7. What is the amount paid to unsecured creditors without priority? _____________8. What is the amount paid to partially secured…
A company that was to be liquidated had the following liabilities: Income Taxes $ 15,000 Notes Payable secured by land 120,000 Accounts Payable 48,000 Salaries Payable ($18,000 for Employee #1 and $5,000 for Employee #2) 23,000 Administrative expenses for liquidation 25,000 The company had the following assets: Book Value Fair Value Current Assets $ 130,000 $115,000 Land 60,000 100,000 Building 175,000 220,000 Total assets, available to pay liabilities with priority and unsecured creditors, are calculated to be what amount? $100,000. $335,000. $320,000. $305,000. $365,000.