The Walston Company is to be liquidated and has the following
liabilities:
Income
taxes
$
8,400...
The Walston Company is to be liquidated and has the following
liabilities:
Income
taxes
$
8,400
Notes payable
(secured by land)
164,000
Accounts
payable
107,000
Salaries payable
(evenly divided between two employees)
11,000
Bonds
payable
92,000
Administrative
expenses for liquidation
42,000
The company has the following assets:
Book Value
Fair Value
Current
assets
$
102,000
$
57,000
Land
122,000
112,000
Buildings and
equipment
122,000
155,000
How much money will the holders of the notes payable collect
following liquidation?
A company preparing for a Chapter 7 liquidation has the
following liabilities:
•
Note payable A...
A company preparing for a Chapter 7 liquidation has the
following liabilities:
•
Note payable A of $112,000 secured by land having a book value
of $61,000 and a fair value of $81,000.
•
Note payable B of $142,000 secured by a building having a
$71,000 book value and a $51,000 fair value.
•
Note payable C of $71,000, unsecured.
•
Administrative expenses payable of $31,000.
•
Accounts payable of $131,000.
•
Income taxes payable of $41,000.
The company also...
Wright Company recently petitioned for bankruptcy and is now in
the process of preparing a statement...
Wright Company recently petitioned for bankruptcy and is now in
the process of preparing a statement of affairs. The carrying
values and estimated fair values of the assets of Wright Company
are as follows:
Carrying
Value
Fair Value
Cash
$10,000
$10,000
Accounts
Receivable
60,000
20,000
Inventory
70,000
40,000
Land
90,000
75,000
Building
(net)
200,000
150,000
Equipment
(net)
80,000
25,000
Total
$510,000
$320,000
Debts...
Pizza Corporation acquired 80 percent ownership of Slice
Products Company on January 1, 20X1, for $147,000....
Pizza Corporation acquired 80 percent ownership of Slice
Products Company on January 1, 20X1, for $147,000. On that date,
the fair value of the noncontrolling interest was $36,750, and
Slice reported retained earnings of $41,000 and had $96,000 of
common stock outstanding. Pizza has used the equity method in
accounting for its investment in Slice.
Trial balance data for the two companies on December 31, 20X5, are
as follows:
Pizza
Corporation
Slice
Products Company
Item
Debit
Credit
Debit
Credit...
Demote manufacturing Company Ltd. was adjudged bankrupt on a
petition of its creditors, and the trustee...
Demote manufacturing Company Ltd. was adjudged bankrupt on a
petition of its creditors, and the trustee in bankruptcy realized
the following amounts from the sale of its business assets:
Cash in Bank
$14,000
Accounts Receivable
42,000
Inventories
20,000
Land & Buildings
72,000
The liabilities of the business were as follows at the time of
the receiving order: (Assume all secured creditors had taken the
necessary steps to protect their security.)
Rent owed to landlord (5 months @ $3,000 per month)...
Mandich Co. had the following amounts for its assets,
liabilities, and stockholders' equity accounts just before...
Mandich Co. had the following amounts for its assets,
liabilities, and stockholders' equity accounts just before filing a
bankruptcy petition and requesting liquidation: Book Value Net
Realizable Value Cash $ 10,000 $ 10,000 Accounts receivable 100,000
60,000 Inventory 350,000 350,000 Land 110,000 75,000 Building and
equipment 700,000 300,000 Accounts payable 100,000 Salaries payable
70,000 Notes payable (secured by inventory) 300,000 Employees’
claims for contributions to pension plans 10,000 Taxes payable
80,000 Liability for accrued expenses 25,000 Bonds payable 500,000
Common...
Olds Company declares Chapter 7 bankruptcy. The following are
the asset and liability book values at...
Olds Company declares Chapter 7 bankruptcy. The following are
the asset and liability book values at that time. Administrative
expenses are estimated to be $20,000:
Cash
$
32,000
Accounts receivable
68,000
(worth $36,000)
Inventory
78,000
(worth $64,000)
Land (secures note A)
208,000
(worth $168,000)
Building (secures bonds)
408,000
(worth $336,000)
Equipment
128,000
(worth unknown)
Accounts payable
188,000
Taxes payable to government
28,000
Note payable A
186,000
Note payable B
258,000
Bonds payable
308,000
The holders of note payable B want...
Balance sheet data for Kilroy Company for 2022 appears below:
January 1, 2022 December 31, 2022...
Balance sheet data for Kilroy Company for 2022 appears below:
January 1, 2022 December 31, 2022
ASSETS:
Cash 27,000 43,000
Accounts receivable 39,000 26,000
Inventory 42,000 88,000
Prepaid insurance 21,000 29,000
Land 37,000 72,000
Equipment 61,000 94,000
Accumulated depreciation <14,000> <25,000>
LIABILITIES + EQUITY:
Accounts payable 33,000 41,000
Income taxes payable 21,000 15,000
Unearned revenue 25,000 39,000
Notes payable 51,000 75,000
Common stock 34,000 93,000
Retained earnings 49,000 64,000
Kilroy Company's 2022 income statement is given below:
Sales revenue 329,000...
Sedgwick Company at December 31 has cash $24,000, noncash assets
$105,000, liabilities $50,200, and the following...
Sedgwick Company at December 31 has cash $24,000, noncash assets
$105,000, liabilities $50,200, and the following capital balance :
Floyd $43,200 and Dewitt $35,600. The firm is liquidated, and
$117,000 in cash is received for the noncash assets. Floyd and
Dewitt income rations are 60% and 40% respectively.
Sedgwick Company
Schedule of cash payment
Items cash + Noncash assets= liabilities + Floyd, Capital+
Dewitt, Capital
balance before liquidation $24,000 $105,000 $50,200 $43,200
$35,600
sales of noncash asssets and allocation gain...
MC Qu. 129 A companys income statement...
A company's income statement showed the following: net income,...
MC Qu. 129 A companys income statement...
A company's income statement showed the following: net income,
$148,000 and depreciation expense, $37,200. An examination of the
company's current assets and current liabilities showed the
following changes as a result of operating activities: accounts
receivable decreased $11,800; merchandise inventory increased
$22,800; and accounts payable increased $5,800. Calculate the net
cash provided or used by operating activities.
Multiple Choice
$144,800.
$180,000.
$142,000.
$214,000.
$190,400.
MC Qu. 170 Fernwood Company is...
Fernwood Company is...