Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Textbook Question
Chapter 13, Problem 33P
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):
| Assets pledged with fully secured creditors . . . . . . . . . . . . . . . . . . . | $220,000 |
| Fully secured liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 160,000 |
| Assets pledged with partially secured creditors . . . . . . . . . . . . . . . | 390,000 |
| Partially secured liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 510,000 |
| Assets not pledged . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 310,000 |
| Unsecured liabilities with priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 182,800 |
| Accounts payable (unsecured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 400,000 |
- 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?
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A statement of financial affairs created for an insolvent corporation that was beginning the liquidation process disclosed the following data (assets were shown at net realizable values):
Assets pledged with fully secured creditors.
Fully secured liabilities...
Assets pledged with partially secured creditors..
Partially secured liabilities..
Free assets.
Unsecured liabilities with priority.
Unsecured liabilities.
P 260,000
195,000
494,000
637,000
390,000
208,000
650,000
How much money appears to be available for unsecured creditors without priority?
A statement of financial affairs created for an insolventcorporation that is beginning the process of liquidation disclosesthe following data (assets are shown at net realizable values):
Assets pledged withfully secured creditors
$
220,000
Fully securedliabilities
160,000
Assets pledged withpartially secured creditors
390,000
Partially securedliabilities
510,000
Assets notpledged
310,000
Unsecuredliabilities with priority
182,800
Accounts payable(unsecured)
400,000
a.
This company owes $13,000 to an unsecured creditor (withoutpriority). How much money can this creditor expect to collect?
b.
This company owes $120,000 to a bank on a note payable that issecured by a security interest attached to property with anestimated net realizable value of $90,000. How much money can thisbank expect to collect?
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
Chapter 13 Solutions
Advanced Accounting
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