SavedShi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,800 in freecash. The following debts, totaling $46,050, remain:Government claims to unpaid taxes$ 7,600Salary during last month owed to Mr. Key (not an officer)Administrative expenses19,4254,050Salary during last month owed to Ms. Rankin (not an officer)Unsecured accounts payable5,9258,150Required:Indicate how much money will be paid to the creditor associated with each debt.Types of DebtsAmountsAdministrative expenses$4,050Salary during last month owed to Mr. Key and Ms. Rankin$25,350Government claims to unpaid taxes$7,600$0

In a Chapter 7 bankruptcy, the remaining assets are distributed among creditors according to…

Answered: Saved Shi Company is going through a…

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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Bramble Corp. has the following account balances at December 31, 2021: Notes payable ($47,000 due after 12/31/22) $78,000 Unearned service revenue 55,000 Mortgage Payable ($70,000 due in 2022) 195,000 Salaries payable 25,000 Accounts payable 49,000 In addition, Bramble is involved in a lawsuit. Legal counsel feels it is probable Bramble will pay damages of $20,000 in 2022. Bramble records provisions related to litigations in the account Litigation Liability. Prepare the current liabilities section of Bramble's December 31, 2021, balance sheet. Bramble Corp. (Partial) Balance Sheet
Merideth Harper has invested 25,000 in SW Development. The firm has recently declared bankruptcy and has 60,000 in unpaid debts. Explain the paymentsif any if Merideth in these situations. SW Development Company is in the sole owner owed the 60,000. SW Development Comany unlimited liability in a 50/50 patnership Ms Harper has unlimited liability for unpaid bills which means creditors can only claim against the 25,000 she invested Mrs Harper limited liablity which is 60,000
Angela Brock borrowed $544,000 and signed a note payable to Amerifund Mortgage Services, LLC, to buy a house in Silver Spring, Maryland. The note was endorsed in blank and transferred several times "without recourse" before Brock fell behind on the payments. On behalf of Deutsche Bank National Trust Co., BAC Home Loans Servicing LP initiated foreclosure. Brock filed an action in a Maryland state court to block it, arguing that BAC could not foreclose because Deutsche Bank, not BAC, owned the note. Can BAC enforce the note? Explain why or why not.
B Ltd is a company in the chemical industry, situated near the Edward River. Its year end is 30th June 2021 and you were engaged as the auditor on that date. The profit before taxation shown in the draft accounts to 30th June is $24,000,000. The following matters have come to your attention:. A debtor owing $180,000 at 30th June 2021 was declared bankrupt on 1 August 2021. The trustee in bankruptcy has informed B Ltd that she does not expect a payment of more than 8cents in the $1 to be made to unsecured creditors With reference to relevant audit standards, identify the business risk and outline any resulting potential audit risks that may require further investigation.
Marter Co. filed a bankruptcy petition and liquidated its noncash assets. Marter was paying forty cents on the dollar for unsecured claims. Keenan Co. held a mortgage of $150,000 on Marter's land which was sold for $110,000. The total amount of payment that Keenan should have received is calculated to be Select one: a.$150,000. b.$126,000. c.$44,000. d.$60,000. e.$110,000.
Gatsby, Inc. owed $500,000 on account for inventory purchased on November 1, 2020. The company's fiscal year ends on December 31. Gatsby was unable to pay the amount owed by February 1, 2021 due date because of financial difficulties experienced in early 2021. On February 1, 2021, it signed a $500,000, 10% interest- bearing note. This note was repaid with interest on September 1, 2021. How much interest should Gasby recognize on September 1, 2021 (enter your answer in whole dollars, no comma or dollar sign)?
Write double entry? On 7 November 2021 there was a fire in the warehouse, in which inventory valued at $12,000 was destroyed. Under the terms of the insurance contract, the insurance company has stated that it will only pay out the first $3,000 of the claim. No entries have yet been made to record this.
How would this be recorded on an Income Statement. During 2019, Natural State's CFO noticed that bad debt expense in the 2018 income statement was $50,000 too low as a result of an accounting error made by a Natural State employee in the prior year
Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,000 in free cash. The following debts, totaling $42,050, remain: 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 Amounts $ 3,250 Salary during last month owed to Mr. Key and Ms. Rankin Government claims to unpaid taxes 0 $ 6,800 18,625 3,250 5,890 7,350
Payable to Company Founder Jensen Inc. has a $500,000 note payable due to its founder, Jen Jensen. Ms. Jensenis recently deceased and has no heirs that Jensen Inc.’s executive team is aware of. The company has asked for yourhelp to determine whether it is appropriate to derecognize the liability from its financial statements.Required:1. Respond to Jensen Inc. Describe the applicable guidance requirements, including excerpts as needed to supportyour response.2. Next, explain how you located the relevant guidance, including the search method used and which section yousearched within the appropriate topic
DAC, Inc. is being sued by WFT Corp.for $5,000,000. At the end of the year, DAC feels it is probable that it will pay $5,000,000 at some point in the following year. What should DAC and WFT record at the end of the year concerning the lawsuit? Select one: a. DAC does not record any loss; WFT records a $5,000,000 gain. b. Neither company records a loss or gain c. DAC records a $5,000,000 loss; WFT records a $5,000,000 gain d. DAC records a $5,000,000 loss; WFT does not record any gain
On April 15, 2018 Mike’s Framing Co., declared Chapter 11 bankruptcy, owing James Wholesalers $375.00. James will immediately write off Mike’s account as uncollectible. Prepare the appropriate journal entry for James.

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