Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Question
Chapter 13, Problem 52P
a.
To determine
Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017.
b.
To determine
Find how much cash would be paid to an unsecured, non-priority creditor that Lynch, Inc., owes a total of $1,000.
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A. Sold the building for $120,000 and paid the loan.
B. Collected $10,000 from the accounts receivable. Remainder is uncollectible
C. Sold the equipment for $8,000
D. Paid the salaries and taxes payable.
E. Sold all remaining inventory for $8,000
F. Paid liquidation costs.
G. Distributed settlement to remaining creditors
Bottomless Pit
Statement of Realization and Liquidation
For the Month Ended May 31, 200X
Non Cash
Loan
Salary
Liq Costs
Taxes
Accounts
Cash
Assets
Payable
Payable
Payable
Payable
Payable
Deficit
Book Balances May 1
$2,000
$188,000
$115,000
$5,000
$5,000
$10,000
$80,000
($25,000)
Sold building and paid loan
Collected accounts receivable
Sold equipment
Paid salaries and taxes
Sold inventory
Paid liquidation costs
Paid settlement to creditors
Book balances May 31
During the current year, Blake Construction disposed of plant assets in the following transactions:Jan. 6 Equipment costing $18,000 was given to a scrap dealer at no charge. At the date ofdisposal, accumulated depreciation on the office equipment amounted to $16,800.Mar. 3 Blake sold land and a building for $800,000, receiving $100,000 cash and a five-year,12 percent note receivable for the remaining balance. Blake’s records showed thefollowing amounts: Land, $50,000; Buildings, $680,000; Accumulated Depreciation:Building (at the date of disposal), $250,000.Jul. 10 Blake traded in an old truck for a new one. The old truck had cost $26,000, and itsaccumulated depreciation amounted to $22,000. The list price of the new truck was$37,000, but Blake received a $12,000 trade-in allowance for the old truck and paidonly $25,000 in cash. Blake includes trucks in its Vehicles account.Sept. 3 Blake traded in its old computer system as part of the purchase of a new system. Theold system had cost…
Garcia Co. owns equipment that costs $77,300, with accumulated depreciation of $42,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts:
A. $47,000 cash
B. $34,500 cash
C. $27,000 cash
If an amount box does not require an entry, leave it blank
Chapter 13 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 13 - What does the term insolvent mean?Ch. 13 - Why should a company monitor the reporting of...Ch. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - What federal legislation governs most bankruptcy...Ch. 13 - What are the primary objectives of a bankruptcy...Ch. 13 - A bankruptcy case can begin with either a...Ch. 13 - A bankruptcy court enters an order for relief. How...
Ch. 13 - What is the difference between fully secured...Ch. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - What is the difference between a Chapter 7...Ch. 13 - What is the purpose of a statement of financial...Ch. 13 - In a bankruptcy liquidation, what actions does the...Ch. 13 - A trustee for a company that is being liquidated...Ch. 13 - If a company is not required to follow U.S. GAAP,...Ch. 13 - Prob. 19QCh. 13 - In determining whether a company needs to use the...Ch. 13 - In following the liquidation basis of accounting,...Ch. 13 - How does a company report its assets when the...Ch. 13 - What does the term debtor in possession mean?Ch. 13 - Who can develop reorganization plans in a Chapter...Ch. 13 - Prob. 25QCh. 13 - Prob. 26QCh. 13 - In a bankruptcy proceeding, what is a cram down?Ch. 13 - Prob. 28QCh. 13 - During reorganization, how should a companys...Ch. 13 - Prob. 30QCh. 13 - Prob. 31QCh. 13 - Under what conditions does a company that is...Ch. 13 - Prob. 33QCh. 13 - Prob. 34QCh. 13 - What are the objectives of the bankruptcy laws in...Ch. 13 - Prob. 2PCh. 13 - Prob. 3PCh. 13 - In a bankruptcy, which of the following statements...Ch. 13 - Prob. 5PCh. 13 - An involuntary bankruptcy petition must be filed...Ch. 13 - An order for relief creates an automatic stay that...Ch. 13 - Prob. 8PCh. 13 - Which of the following is the minimum limitation...Ch. 13 - On a statement of financial affairs, how are...Ch. 13 - What is a debtor in possession? a. The holder of a...Ch. 13 - How are anticipated administrative expenses...Ch. 13 - Prob. 13PCh. 13 - Which of the following is not an expected function...Ch. 13 - What is an inherent limitation of the statement of...Ch. 13 - What is a cram down? a. An agreement about the...Ch. 13 - Prob. 17PCh. 13 - Prob. 18PCh. 13 - Prob. 19PCh. 13 - How are assets to be reported when the liquidation...Ch. 13 - The New England Company has a debt to a bank of...Ch. 13 - On a balance sheet prepared for a company during...Ch. 13 - Which of the following is not a reorganization...Ch. 13 - What accounting is made for professional fees...Ch. 13 - Which of the following is necessary for a company...Ch. 13 - Prob. 26PCh. 13 - For a company emerging from bankruptcy, how are...Ch. 13 - The Walston Company is to be liquidated and has...Ch. 13 - Prob. 29PCh. 13 - Prob. 30PCh. 13 - Prob. 31PCh. 13 - Mondesto Company has the following debts:...Ch. 13 - A statement of financial affairs created for an...Ch. 13 - A company preparing for a Chapter 7 liquidation...Ch. 13 - Olds Company declares Chapter 7 bankruptcy. The...Ch. 13 - A company going through a Chapter 7 bankruptcy has...Ch. 13 - Pumpkin Company is going through bankruptcy...Ch. 13 - Prob. 38PCh. 13 - Prob. 39PCh. 13 - Kansas City Corporation holds three assets when it...Ch. 13 - Prob. 41PCh. 13 - Prob. 42PCh. 13 - Prob. 43PCh. 13 - Prob. 44PCh. 13 - The following balance sheet has been prepared by...Ch. 13 - Prob. 46PCh. 13 - Prob. 47PCh. 13 - The following balance sheet has been produced for...Ch. 13 - Prob. 49PCh. 13 - Prob. 50PCh. 13 - Prob. 51PCh. 13 - Prob. 52PCh. 13 - Holmes Corporation has filed a voluntary petition...
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