1. Kent Co. filed a voluntary bankruptcy petition on August 15, 2020, and the statement o affairs reflected the following amounts: f Book Value Estimated Current Value Assets Assets pledged with fully secured creditors Assets pledged with partially secured creditors P300,000 P370,000 180,000 120,000 Free Assets 420.000 P900,000 320.000 P810,000 Liabilities Liabilities with priority Fully secured creditors P70,000 260,000 Partially secured creditors 200,000 Unsecured creditors 540.000 P1,070,000 Assume that the assets are converted to cash at the estimated current values and the business is liquidated. a. What amount of cash will be available to pay unsecured non-priority claims?

1. Kent Co. filed a voluntary bankruptcy petition on August 15, 2020, and the statement o affairs reflected the following amounts: f Book Value Estimated Current Value Assets Assets pledged with fully secured creditors Assets pledged with partially secured creditors P300,000 P370,000 180,000 120,000 Free Assets 420.000 P900,000 320.000 P810,000 Liabilities Liabilities with priority Fully secured creditors P70,000 260,000 Partially secured creditors 200,000 Unsecured creditors 540.000 P1,070,000 Assume that the assets are converted to cash at the estimated current values and the business is liquidated. a. What amount of cash will be available to pay unsecured non-priority claims?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Your Question : Please introduction and correct and incorrect option explain!
At December 31, 2020, the available-for-sale debt portfolio for Crane, Inc. is as follows. Security A B C Total Previous fair value adjustment balance-Dr. Fair value adjustment- Dr. Cost $17,500 12,200 500 Fair Value $1,300 $15,000 23,400 25,700 $53,100 $54,900 14,200 Unrealized Gain (Loss) $(2,500 2,000 2,300 1,800 ) On January 20, 2021, Crane, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. Crane, Inc. reports net income in 2020 of $118,000 and in 2021 of $143,000. Total holding gains (including any realized holding gain or loss) equal $49,000 in 2021. Prepare a statement of comprehensive income for 2020, starting with net income. Prepare a statement of comprehensive income for 2021, starting with net income. Please show underlying calculations (especially for reclassification adjustment for 2021). I correctly identified the statement of income for 2020, but am stuck on the one for 2021. Thank you!
Fast answer please
Dengar
At December 31, 2017, the available-for-sale debt portfolio for Steffi Graf, Inc. is as follows. Security Cost Fair Value Unrealized Gain (Loss) A $17,500 $15,000 $(2,500) B 12,500 14,000 1,500 C 23,000 25,500 2,500 Total $53,000 $54,500 1,500 Previous fair value adjustment balance-Dr 400 Fair value adjustment-Dr $1,100 On January 20, 2018, Steffi Graf, Inc. sold security A for $15,100. The sale proceeds are net of brokerage fees. A. Prepare the adjusting entry at December 31, 2017, to report the portfolio at fair value. B. Show the balance sheet presentation of the investment-related accounts at December 31, 2017.
After the end of the reporting period, prior to authorizing for issue the financial statementsof Chubby the Piggy Ltd for the year ended 31 March 20X7 the following issues were raised:1. The notification of the bankruptcy of a customer: The balance of trade receivablesdue from the customer at 31 March 20X7 was $23,000 and at the date of thenotification it was $25,000. No payment is expected from the bankruptcyproceedings.2. Sales of some items of product ChoCoCo were made at a price of $5,40 each in Apriland May 20X7. Sales staff receives a commission of 15% of the sales price on theseproducts. At 31 March 20X7 the company had 12,000 units of this product ininventory included at cost of $6 each.3. The company is being sued by an employee who lost a limb in an accident while atwork on March 15 20X7. The company is contesting the claim as the employee wasnot following the safety procedures that he had been instructed to follow.Accordingly the financial statements include a note of a…
The COCO Manufacturing Company has been forced into bankruptcy as of April 30, 2022. The statement of financial position on that date shows: ASSETS:Cash P 2,700Accounts Receivable 39,350Notes Receivable 18,500 Inventories 87,850Prepaid Expenses 950 Land and Buildings 61,250Equipment 48,800 Retained Earnings (30,850)Total ? LIABILITIES AND EQUITY: Accounts Payable P52,500 Notes Payable - PNB 15,000 Notes Payable - Suppliers 51,250 Accrued Wages 1,850 Accrued Taxes 4,650 Mortgage Bonds Payable 90,000 Common Stock - P 100 par 75,000 Total ? Additional Information:▪Accounts Receivable of P 16,110 and Noted Receivable of P 12,500 are expected to be…
DO not give answer in image
Please help me. Thankyou.
Assume that the business has received notification on 15 April 2020 that a debtor owing $1,850 has declared bankruptcy. On 22 August 2020 the debtor unexpectedly remits full payment for the previously written-off account. Prepare the general journal entry to re-establish this debt and record payment under each of the following methods: (i) The direct write-off method (ii) The allowance method
OurNewCO sold its Boring bond (AFS) for its fair value, $900,000) January 1, 2021. The balances from 12/31/2020 are follows: CASH REVENUE АMORT CV 885301 6/30/2020 50,000 53118.06 3,118 888,419 12/31/2020 50,000 53305.14 3,305 891,724 On 12/31/2020 the FV adjustment account had a debit balance of $8276. The face amount of the Boring Bonds is $1,000,000. Write out the journal entries needed to record this sale. Then complete the statements below.
Answer please with correct