LO 13-4,13-6,E 13-728. The Walston Company is to be liquidated. It hasthe following liabilities:Income taxes$ 8,000Notes payable (secured by land)Accounts payable120,00085,000Salaries payable (evenly dividedbetween two employees)Bonds payableAdministrative expenses for6,00070,000liquidation20,000The company has the following assets:ВookFairValueValueCurrent assets$ 80,000 $ 35,000Land100,00090,000Buildings and100,000110,000equipmentHow much money will the holders of the notespayable collect following liquidation?

Notes Payable- Notes payable are long-term liabilities that designate the money a corporation owes…

Answered: LO 13-4, 13-6, 13-7 28. The Walston…

Business

Accounting

LO 13-4, 13-6, 13-7 28. The Walston Company is to be liquidated. It has the following liabilities: 8.000 Income taxes

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

LO 13-4,
13-6,
E 13-7
28. The Walston Company is to be liquidated. It has
the following liabilities:
Income taxes
$ 8,000
Notes payable (secured by land)
Accounts payable
120,000
85,000
Salaries payable (evenly divided
between two employees)
Bonds payable
Administrative expenses for
6,000
70,000
liquidation
20,000
The company has the following assets:
Вook
Fair
Value
Value
Current assets
$ 80,000 $ 35,000
Land
100,000
90,000
Buildings and
100,000
110,000
equipment
How much money will the holders of the notes
payable collect following liquidation?

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