Mandich 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 10,000 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) S Book Value 10,000 S 100,000 350,000 110,000 700,000 100,000 70,000 300,000 10,000 80,000 25,000 500,000 200,000 100,000 (115,000) 60,000 350,000 75,000 300,000 of the salaries payable, $30,000 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: John Webb was owed $10,600, Samantha Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $40,000.
Mandich 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 10,000 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) S Book Value 10,000 S 100,000 350,000 110,000 700,000 100,000 70,000 300,000 10,000 80,000 25,000 500,000 200,000 100,000 (115,000) 60,000 350,000 75,000 300,000 of the salaries payable, $30,000 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: John Webb was owed $10,600, Samantha Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for administering the liquidation amounted to $40,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Mandich 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
10,000
60,000
350,000
75,000
300,000
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)
S
Book
Value
10,000 S
100,000
350,000
110,000
700,000
100,000
70,000
300,000
10,000
80.000
25,000
500,000
200,000
100,000
(115.000)
of the salaries payable, $30,000 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: John Webb was owed $10,600, Samantha
Jones was owed $15,000, Sandra Johnson was owed $11,900, and Dennis Roberts was owed $2,500. The maximum owed for any one employee's claims for contributions to benefit plans was $800. Estimated expense for
administering the liquidation amounted to $40,000.
What was the total amount of unsecured liabilities with priority?
O $130,000.
O $155,000.
O $165,000.
$170,000.
O $200,000.
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