Manji The Walston Company is to be liquidated. It has the following liabilities:Income taxesNotes payable (secured by land)Accounts payableSalaries payable (evenly divided between twoemployees)Bonds payableAdministrative expenses for liquidationThe company has the following assets:$ 3,200152,000101,00022,00086,00036,000Book ValueFair ValueCurrent assets$ 96,000Land116,000$ 51,000106,000Buildings and equipment116,000150,000Required:How much money will the holders of the notes payable collect following liquidation?Total amount collected

FREE ASSETS ACURRENT ASSETS $ 51,000.00BBUILDING & EQUIPMENT $ 150,000.00CTOTAL (A+B) $…

Answered: The Walston Company is to be…

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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A statement of realization and liquidation has been prepared for the RESTLESS Corporation. The following information is available:Assets to be realized- P60,000 Liabilities assumed- P50,000Assets acquired- P40,000 Liabilities not liquidated- P40,000Assets realized- P55,000 Liabilities to be Liquidated- P80,000Assets not realized- P15,000 Liabilities liquidated- P60,000Supplementary credits- P110,000 Supplementary Charges- P97,000How much is the net increase (decrease) in retained earnings?
The statement of realization and liquidation of ABC Corp are as follows: Assets to be realized P1,800,000 Assets acquired 300,000 Assets realized 1,100,000 Assets not realized 1,200,000 Liabilities liquidated 1,600,000 Liabilities not liquidated P1,400,000 Liabilities assumed 1,500,000 Liabilities to be liquidated 2,000,000 Supplementary credits 1,950,000 Supplementary charges 2,500,000 Additional ordinary shares issued for cash during the year totaled P500,000. What is the ending balance of cash account assuming that Ordinary Share, beginning is P1,500,000 and deficit, ending is P400,000?
ABC Co. is undergoing liquidation. Information on ABC Co.'s assets and liabilities is shown below: ASSETS Book value Realizable value Assets pledged to fully secured creditors Assets pledged to partially secured creditors 360,000 480,000 208,000 192,000 Free assets 600,000 576,000 1,168,000 1,248,000 LIABILITIES Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 288,000 288,000 384,000 240,000 432,000 384,000 240,000 432,000 1,344,000 1,344,000 How much can the partially secured creditors expect to recover from their claims?
A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values):a. This company owes $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect? b. This company owes $120,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $90,000. How much money can this bank expect to collect?
When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) P 80,000 Land and Building (fair value, P240,000) 200,000 Goodwil (fair value, 0) 40,000 Total Assets P 320,000 Accounts Payable P 160,000 Mortgage Payable (secured by land & building) 200,000 Ordinary Share 100,000 Accumulated Profits (140,000) Total Liability and Equity P 320,000 What percentage of their claims are the unsecured creditors likely to get?
The following data were taken from the statement of realization and liquidation of DLR Corporation for the quarter that ended September 30, 2022: Assets to be realized Assets acquired Assets Realized Assets not realized Liabilities to be liquidated Liabilities assumed Liabilities liquidated Liabilities not liquidated Supplementary credits Supplementary charges 495,000 540,000 630,000 225,000 810,000 270,000 305,000 675,000 765,000 937,000 As of September 30, 2022, DLR's capital stock is P450,000 and retained earnings is P432,000. No additional shares were issued after that date. b. (252,000) c. (315,000) d. 315,000 20. What is the ending cash balance? a. 1,305,000 b. 840,000 c. 1,050,000 d. 1,080,000 19. What is the net income (loss) for the period? a. 252,000
The following information was taken from the records of Blue Inc. for the year 2025: Income tax applicable to income from continuing operations $228,140, income tax applicable to loss on discontinued operations $31,110, and unrealized holding gain on available-for- sale debt securities (net of tax) $18,300. Gain on sale of equipment Loss on discontinued operations Administrative expenses Rent revenue Loss on write-down of inventory $115,900 91,500 292,800 48,800 73,200 Shares outstanding during 2025 were 100,000. Cash dividends declared Retained earnings January 1, 2025 Cost of goods sold Selling expenses Sales revenue BLUE INC. Income Statement $ $183,000 $ 3,000,000 1,037,000 Prepare a single-step income statement (with respect to items in Income from operations). (Round earnings per share to 2 decimal places, e.g. 1.48. Enter other revenue and gains before other expenses and losses) 366,000 2.318.000
A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data. The assets are shown at net realizable values. Assets pledged with fully secured creditors Fully secured liabilities Assets pledged with partially secured creditors Partially secured liabilities Assets not pledged Unsecured liabilities with priority Accounts payable (unsecured) $ 230,000 165,000 395,000 520,000 315,000 189,200 405,000 a. The company owes $18,000 on an account payable to an unsecured creditor (without priority). How much money can this creditor expect to collect? b. The company owes $130,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $95,000. How much money can the bank expect to collect? a. Expected amount by creditor b. Expected amount by bank
Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $ 375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities & equity $3,750,000 The trustee's costs total $296,000, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of $2.3 million is received from sale of the assets? Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If your answer is zero, enter “0”. Enter your answers as positive values. Distribution of proceeds on liquidation: Proceeds from the sale of assets $ Less: 1. First…
Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $ 375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities & equity $3,750,000 The trustee's costs total $310,250, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total $2.7 million is received from sale of the assets? Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If your answer is zero, enter "0". Enter your answers as positive values. Distribution of proceeds on liquidation: Proceeds from the sale of assets 24 Less: 1. First mortgage (paid from the sale of fixed assets) 2. Fees and expenses of…
ABC Company is beginning the process of liquidation. ABC has prepared a statement of financial affairs that discloses the following data: Assets pledged with secured creditors $ 210,000 Secured liabilities 125,000 Assets pledged with partially secured creditors 290,000 Free assets (not including excess to be received from assets pledged on secured liabilities) 225,000 Unsecured liabilities with priority 121,000 Unsecured liabilities 450,000 ABC owes $45,000 to Wallace Company, an unsecured creditor (without priority). How much money can Wallace Company expect to collect from ABC?
A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data. The assets are shown at net realizable values. Assets pledged with fully secured creditors Fully secured liabilities Assets pledged with partially secured creditors Partially secured liabilities Assets not pledged Unsecured liabilities with priority Accounts payable (unsecured) $ 238,000 169,000 399,000 528,000 319,000 199,700 409,000 The company owes $22,000 on an account payable to an unsecured creditor (without priority). How much money can this creditor expect to collect? The company owes $138,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $99,000. How much money can the bank expect to collect?

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