Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,000 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. Answer is complete but not entirely correct. Amounts $3,250 $ 21,875 4,850 Types of Debts Administrative expenses Salary during last month owed to Mr. Key and Ms. Rankin Government claims to unpaid taxes *** 55 $ 6,800 18,625 3,250 5,890 7,350
Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,000 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. Answer is complete but not entirely correct. Amounts $3,250 $ 21,875 4,850 Types of Debts Administrative expenses Salary during last month owed to Mr. Key and Ms. Rankin Government claims to unpaid taxes *** 55 $ 6,800 18,625 3,250 5,890 7,350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text: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.
Answer is complete but not entirely correct.
Amounts
$3,250
$21,875
4,850
Types of Debts
Administrative expenses
Salary during last month owed to Mr. Key and Ms. Rankin
Government claims to unpaid taxes
***
55SS
n
*** (
$ 6,800
18,625
3,250
5,890
7,350
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