A company going through a Chapter 7 bankruptcy has the following account balances:CashReceivables (25% collectible)$ 49,00069,000Inventory (worth $34,850)109,000Land (worth $253,000) (secures note payable)195,000Buildings (worth $275,000) (secures bonds payable)390,000Salaries payable (4 workers owed equal amounts for last 2 weeks)19,500Accounts payable109,000Note payable (secured by land)205,000Bonds payable (secured by building)490,000Common stock290,000Retained earnings(235,000)How much will be paid to each of the following?> Answer is complete but not entirely correct.Salaries payableAccounts payable$19,500Note payableBonds payable$ 41,420 x$ 205,000$ 356,700 ×

To determine how much will be paid to each category in a Chapter 7 bankruptcy, we need to follow the…

Answered: A company going through a Chapter 7…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 59P

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A4
S Olds Company declares Chapter 7 bankruptcy. The following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $31,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 43,000 79,000 89,000 Amount to be received 219,000 (valued at $47,000) (valued at $75,000) (valued at $179,000) 419,000 (valued at $358,000) 139,000 (value unknown) 199,000 39,000 208,000 269,000 319,000 The holders of note payable B want to collect at least $134,500. To achieve this goal, how much does the company have to receive in the liquidation of its equipment? $ 238,500
Olds Company declares Chapter 7 bankruptcy. Following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $15,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 27,000 63,000 73,000 203,000 403,000 123,000 (value unknown) 183,000 23,000 176,000 253,000 303,000 (valued at $31,000) (valued at $59,000) (valued at $163,000) (valued at $326,000) The holders of note payable B want to collect at least $101,200. Required: To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
s
Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $30,000: Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 42,000 78,000 (worth $46,000) 88,000 (worth $74,000) (worth 218,000 Amount to be received $178,000) (worth 418,000 $356,000) 138,000 (worth unknown) 198,000 38,000 206,000 268,000 318,000 The holders of note payable B want to collect at least $120,600. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
Saved Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,800 in free cash. The following debts, totaling $46,050, remain: Government claims to unpaid taxes $ 7,600 Salary during last month owed to Mr. Key (not an officer) Administrative expenses 19,425 4,050 Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable 5,925 8,150 Required: Indicate how much money will be paid to the creditor associated with each debt. Types of Debts Amounts Administrative expenses $ 4,050 Salary during last month owed to Mr. Key and Ms. Rankin $ 25,350 Government claims to unpaid taxes $ 7,600 $ 0
Olds Company declares Chapter 7 bankruptcy. Following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $23,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable $ 35,000 71,000 (valued at $39,000) 81,000 (valued at $67,000) 211,000 (valued at $171,000) 411,000 (valued at $342,000) 131,000 (value unknown) 191,000 31,000 192,000 261,000 311,000 Taxes payable to government Note payable A Note payable B Bonds payable The holders of note payable B want to collect at least $104,400. Required: To achieve this goal, how much does the company have to receive in the liquidation of its equipment? Amount to be received
ASAP
Bottomless Pit Inc. files a voluntary petition for bankruptcy on May 1, 200X which includes the following assets and liabilities: Carrying Realizable Amount Amount Assets Cash $2,000 $2,000 Accounts receivable 66,000 20,000 Inventory 6,000 3,000 Building 80,000 130,000 Equipment 36,000 10,000 Total Assets $190,000 $165,000 Liabilities Salaries payable $5,000 Taxes payable 10,000 Accounts payable 80,000 Loan payable 115,000 secured by building Liquidation costs payable 5,000 $215,000 Prepare a Statement of Affairs and a Schedule of Estimated Amounts to be Recovered by Creditors as of May 1, 200X. On May 1, 200X the Bankruptcy Court appointed you as trustee to administer the assets…
Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable Required: Indicate how much money will be paid to the creditor associated with each debt. Types of Debts Administrative expenses Salary during last month owed to Mr. Key and Ms. Rankin Government claims to unpaid taxes Amounts $ 4,150 $ 7,700 19,525 4,150 5,930 8,250
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