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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The Walston Company is to be liquidated. It has the following liabilities: Income taxes Notes payable (secured by land) Accounts payable Salaries payable (evenly divided between two employees) Bonds payable Administrative expenses for liquidation The company has the following assets: $ 7,600 136,000 93,000 14,000 78,000 28,000 Book Value Fair Value Current assets $ 88,000 Land 108,000 Buildings and equipment 108,000 $ 43,000 98,000 132,000 Required: How much money will the holders of the notes payable collect following liquidation? Total amount collected
Pitch Co. is undergoing liquidation. Infórmation on Pitch Co.. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 500,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 300,000 1,600,000 1,280,000 Free assets 3,100,000 2,880,000 LIABILITIES Unsecured liabilities with priority 400,000 480,000 1,000,000 1,050,000 Fully secured creditors Partially secured creditors Unsecured creditors without priority 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 1. What is the estimated recovery percentage of unsecured creditors without priority? а. 60% b. 75% с. 78% d. 80%
Pitch Co. is undergoing liquidation. Information on Pitch Co. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 500,000 300,000 1,280,000 1,600,000 3,100,000 Free assets 2,880,000 LIABILITIES 400,000 480,000 Unsecured liabilities with priority Fully secured creditors Partially secured creditors Unsecured creditors without priority 1,000,000 1,050,000 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 2. How much can the "partially secured creditors" expect to recover from their claims? а. 432,000 b. 445,600 c. 510,000 d. 548,000
The Walston Company is to be liquidated. It has the following liabilities: Income taxes $ 9,400 Notes payable (secured by land) 134,000 Accounts payable 92,000 Salaries payable (evenly divided between two employees) 13,000 Bonds payable 77,000 Administrative expenses for liquidation 27,000 The company has the following assets: Book Value Fair Value Current assets $ 87,000 $ 42,000 Land 107,000 97,000 Buildings and equipment 107,000 131,000 How much money will the holders of the notes payable collect following liquidation?
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?
Hardev
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?
Alpha Corporation, about to be liquidated, has the following amounts for its assets and liabilities: Book Value Net Realizable Value Current assets $ 225,000 $ 180,000 Land 80,000 100,000 Building 560,000 450,000 Equipment 250,000 120,000 Accounts payable 200,000 Income taxes payable 80,000 Mortgage payable 600,000 Note payable 75,000 The mortgage is secured by the land and building, and the note payable is secured by the equipment. Alpha expects that the expenses of administering the liquidation will total $45,000. Required: How much should Alpha expect to pay on the accounts payable?
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 company that was to be liquidated had the following liabilities: Income taxes $ 10,400 Notes payable (secured by land) Accounts payable 156,000 $107,900 Salaries payable to employees ($16,000 for John Jay and $2,800 for Ann Still) Bonds payable Administrative expenses for liquidation 18,800 81,000 26,000 The company had the following assets: Вook Fair Value Value $104,000 $ 42,900 130,000 Current assets Land 117,000 Buildings & equipment 130,000 143,000 Prepare a schedule to show the amount of total assets available to pay liabilities with priority and unsecured creditors. Short Answer Toolbar navigation BI U S : : > !!!
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?
Action, Inc. acquired the following assets and assumed the related liabilities of Slacker Corp. in a transaction completed on February 16, 2023: Accounts receivable, net Inventories Property, plant & equipment Non-amortizable intangible assets Carrying value for Slacker Current liabilities Noncurrent liabilities $ 11,000 $ 50,000 $ 100,000 $ 200,000 Fair Value $ 10,000 $ 50,000 $ 150,000 $ 225,000 $ (40,000) $(200,000) $ (40,000) $(200,000) Action paid $205,000 in cash for all of the above from Slacker. a) Determine if Action must record any goodwill. Show any calculations. b) Record the acquisition in Action's general journal on Feb. 16, 2023. Show: any calculations. c) Prepare any adjusting entry for amortization required as of the fiscal year end, December 31, 2023. If no amortization is required, explain why.

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