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 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 v

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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Plano Ltd, whose capital consisted of $50000 in fully paid shares, was wound up as a result of a court order. Its liquidator realised $1,343,300 from the sale of the company’s assets. This amount included $340,000 from the proceeds on sale of the company’s land and buildings. Debts proved and admitted were: Unsecured Notes 200000 Debentures (secured by circulating security interest) 600000 First mortgage on land and buildings 200000 Trade accounts payable 160000 PAYG tax instalment 1560 Fringe benefits tax 4000 Directors’ fees 6000 GST 3978 Employees’ holiday pay 10000 Employees’ wages — 8000 Secretary’s salary — 1440 Managing director’s salary — 4800 Sales commission 1000 Liquidation expenses 6000 Second mortgage on land and buildings 160000 Liquidator’s remuneration 16000 Required Show the order of priority of payment of debts for Plano Ltd and calculate the amount payable to the…
54. ABC Company is in a capital deficiency position and is considering the possibility of liquidation. An analysis of the assets and liabilities of the entity is provided: Assets at net realizable value (pledged against liabilities of P150,000) P250,000 Assets at net realizable value (pledged against liabilities of P260,000) 100,000 Assets at net realizable value (not pledged against any liabilities) 160,000 Liabilities with priority 85,000 Unsecured creditors 400,000 Round off the estimated recovery percentage to XX.XX%, if needed. How much is the estimated payment to partially secured creditors?
Edgardo Company, an SME, provided the following data on December 31, 2018: Unamortized bond issue cost 150,000 Organization cost 200,000 Losses incurred in the early years of the entity's operations 500,000 1,000,000 Computer software (integral part of a computer controlled machine) Patent 1,500,000 Amount set up by the board of directors as goodwill 400,000 Franchise 2,000,000 What total amount of intangible assets should be recognized on December 31, 2018?
The A&Z Real Estate Co. is to be liquidated. The book value of its assets is $62.0 billion. Bonds with a face value of $39 billion are secured by a mortgage on the company's Toronto and New York buildings. A&Z has subordinated debentures outstanding in the amount of $44.5 billion; shareholders' equity has a book value of $11.5 billion; $12.0 billion is used to cover administrative costs and other claims (including unpaid wages, pension benefits, legal fees, and taxes). The company has a liquidating value of $41 billion. Of this amount, $16.5 billion represents the proceeds from the sale of the Toronto and New York buildings. As the trustee in bankruptcy, you wish to follow the bankruptcy law strictly. What is your proposed distribution? (Enter the answers in billions. Do not round the intermediate calculations. Do not leave any empty spaces; input a O wherever it is required. Round the final answers to 1 decimal place. Omit $ sign in your response.) Admin. Costs & other Mortgage bonds…
PR Company pays $25,000 in cash and issues no-par stock with a fair value of $40,000 to acquire all of SX Corporation's net assets. SX's balance sheet at the date of acquisition is as follows: Current assets Property, plant & equipment, net Identifiable intangible assets Total assets Current liabilities Long-term debt Capital stock Retained earning SX Corporation Book value Fair value $5,000 $8,000 13,000 4,000 $22,000 Accumulated other comprehensive income Treasury stock Total abilities & equity $4,600 14,500 4,000 5.500 (1,000) (R600) $22,000 9,000 13,000 $5,600 13,800 PR's consultants find these items that are not reported on SXS balance sheet
A Company that was to be liquidated had the following liabilities: Income Taxes 10,000 Notes Payable secured by land 100,000 Accounts Payable 251,050 Salaries Payable 12,950 Administrative expenses or liquidation 20,000 The Company had the following assets: Book Value Fair Value Current assets 100,000 95,000 Land 50,000 75,000 Building 150,000 200,000 QUESTION: Determine the total net free assets.
One of the companies purchased a set of fixed assets for an amount of 12 million dinars in cash. The fair market value of these assets was as follows: lands 6 million dinars buildings 5 million dinars machines 3 million dinars the cars 4 million dinars Required/recorded purchase for these assets
TBB Corp. has the following information regarding three of its assets: Estimated Book Value Cash Flows Fair Value Equipment $ 100,000 $ 106,000 $ 90,000 Building $ 200,000 $ 250,000 $ 195,000 Patent $ 50,000 $ 58,000 $ 36,000 What amount of loss should be recorded by TBB due to asset impairment?
14 DUFFLE Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. What is the amount of net free assets? Group of answer choices 50,000 44,500 32,000 93,000
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental tor $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Fair Value 600,000 4,750,000 210,000 (800,000) $ 4,760,000 Book Value $ 700,000 4,050,000 Accounts Receivable Buildings Equipment Accounts Payable 120,000 (800,000) $ 4,070,000 Net assets Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern Equipment's acquisition of Pioneer Equipment Rental. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the acquisition of Pioneer Equipment Rental. Note: Enter debits before credits. Transaction General Journal Debit Credit 1
Northern purchased the entire business of Southern including all its assets and liabilities for $658,000. Below is information related to the two companies: Northern Southern Fair value of assets $1,044,000 $798,000 Fair value of liabilities 585,000 315,000 Reported assets 813,000 634,000 Reported liabilities 483,000 258,000 Net Income for the year 59,000 58,000 How much goodwill did Northern pay for acquiring Southern?
SFFN Corp. purchased the entire business of AZC, Inc. including all its assets and liabilities for $1,800,000. Below is information related to the two companies: SFFN AZC Fair value of assets $ 3,050,000 $ 1,600,000 Fair value of liabilities 2,575,000 800,000 Reported assets 2,800,000 1,400,000 Reported liabilities 2,500,000 750,000 Net Income for the year 460,000 250,000 How much goodwill will SFFN recognize as a result of its acquisition of AZC? Select one: a. $-0- b. $1,225,000 c. $1,150,000 d. $200,000 e. $1,000,000