Cash Accounts receivable Inventory Land Building and equipment Accounts payable Salaries payable Notes payable (secured by inventory) Employees' claims for contributions to pension plans Taxes payable Liability for accrued expenses Bonds payable Common stock Additional paid-in capital Retained earnings (deficit) Multiple Choice OOOO O $100,000. $460,000 $655.000 assets, lab of the salaries payable. $35.000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: Barbara Jones was owed $11,200, Denise Graham was owed $18.700. John Sanders was owed $12.100, and Robert Walters was owed $3.000. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $45.000. On a statement of financial affairs, what amount would have been shown as assets available to pay liabilities with priority and unsecured creditors? $910,000. $590,000 kholders equity accounts just Net Realizable Value $ 20,000 80,000 360,000 100,000 350,000 Book Value $ 20,000 125,000 360,000 130,000 740,000 120,000 80,000 320,000 12,000 85,000 28,000 500,000 250,000 120,000 (140,000) liquidat
Cash Accounts receivable Inventory Land Building and equipment Accounts payable Salaries payable Notes payable (secured by inventory) Employees' claims for contributions to pension plans Taxes payable Liability for accrued expenses Bonds payable Common stock Additional paid-in capital Retained earnings (deficit) Multiple Choice OOOO O $100,000. $460,000 $655.000 assets, lab of the salaries payable. $35.000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: Barbara Jones was owed $11,200, Denise Graham was owed $18.700. John Sanders was owed $12.100, and Robert Walters was owed $3.000. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $45.000. On a statement of financial affairs, what amount would have been shown as assets available to pay liabilities with priority and unsecured creditors? $910,000. $590,000 kholders equity accounts just Net Realizable Value $ 20,000 80,000 360,000 100,000 350,000 Book Value $ 20,000 125,000 360,000 130,000 740,000 120,000 80,000 320,000 12,000 85,000 28,000 500,000 250,000 120,000 (140,000) liquidat
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Palmer Co. had the following amounts for its assets, liabilities, and stockholders' equity accounts just before filing a bankruptcy petition and requesting liquidation:
Net
Realizable
Value
$ 20,000
80,000
360,000
Cash
Accounts receivable
Inventory
Land
Building and equipment
Accounts payable
Catani
Salaries payable
M
Notes payable (secured by inventory)
pocke
Employ
Employees' claims for contributions to
pension plans
pense
Taxes payable
HONT Fox
Liability for accrued expenses
Bonds payable
Common stock
Additional paid-in capital
Retained earnings (deficit)
Multiple Choice
O $100,000.
O
O
O
O
Of the salaries payable, $35,000 was owed to an officer of the company. The remaining amount was owed to salaried employees who had not been paid within the previous 80 days: Barbara Jones was owed $11,200, Denise Graham was owed $18,700, John Sanders was owed $12,100, and Robert
Walters was owed $3,000. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $45,000.
On a statement of financial affairs, what amount would have been shown as assets available to pay liabilities with priority and unsecured creditors?
$460,000.
$655,000.
$910,000.
Book Value
$590,000.
$ 20,000
125,000
360,000
130,000
740,000
120,000
80,000
320,000
12,000
85,000
28,000
500,000
250,000
120,000
(140,000)
100,000
350,000
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