Olds Company declares Chapter 7 bankruptcy. Following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $23,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable $ 35,000 71,000 (valued at $39,000) 81,000 (valued at $67,000) 211,000 (valued at $171,000) 411,000 (valued at $342,000) 131,000 (value unknown) 191,000 Taxes payable to government Note payable A Note payable B Bonds payable The holders of note payable B want to collect at least $104,400. 31,000 192,000 261,000 311,000 Amount to be received Required: To achieve this goal, how much does the company have to receive in the liquidation of its equipment?
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- Olds Company declares Chapter 7 bankruptcy. Following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $15,000. Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 27,000 63,000 73,000 203,000 403,000 123,000 (value unknown) 183,000 23,000 176,000 253,000 303,000 (valued at $31,000) (valued at $59,000) (valued at $163,000) (valued at $326,000) The holders of note payable B want to collect at least $101,200. Required: To achieve this goal, how much does the company have to receive in the liquidation of its equipment?Olds Company declares Chapter 7 bankruptcy. The following are the asset and liability book values at that time. Administrative expenses are estimated to be $30,000: Cash Accounts receivable Inventory Land (secures note A) Building (secures bonds) Equipment Accounts payable Taxes payable to government Note payable A Note payable B Bonds payable $ 42,000 78,000 (worth $46,000) 88,000 (worth $74,000) (worth 218,000 Amount to be received $178,000) (worth 418,000 $356,000) 138,000 (worth unknown) 198,000 38,000 206,000 268,000 318,000 The holders of note payable B want to collect at least $120,600. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?ASAP
- 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: The holders of note payable B want to collect at least $129,000. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?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 . . . . . . . . . . . . . . . . . . . . $ 32,000Accounts receivable . . . . . . . . 68,000 (valued at $36,000)Inventory .. 78,000 (valued at $64,000)Land (secures note A) . . . . . . 208,000 (valued at $168,000)Building (secures bonds) . . . . 408,000 (valued at $336,000)Equipment . . . . . . . . . . . . . 128,000 (value unknown)Accounts payable . . . . . . . . . 188,000Taxes payable to government .. 28,000Note payable A . . . . . . . . . . .. 186,000Note payable B . . . . . . . . . . . 258,000Bonds payable . . . . . . . . . . . 308,000 The holders of note payable B want to collect at least $129,000. To achieve this goal, how much does the company have to receive in the liquidation of its equipment?Bottomless Pit Inc. files a voluntary petition for bankruptcy on May 1, 200X which includes the following assets and liabilities: Carrying Realizable Amount Amount Assets Cash $2,000 $2,000 Accounts receivable 66,000 20,000 Inventory 6,000 3,000 Building 80,000 130,000 Equipment 36,000 10,000 Total Assets $190,000 $165,000 Liabilities Salaries payable $5,000 Taxes payable 10,000 Accounts payable 80,000 Loan payable 115,000 secured by building Liquidation costs payable 5,000 $215,000 Prepare a Statement of Affairs and a Schedule of Estimated Amounts to be Recovered by Creditors as of May 1, 200X. On May 1, 200X the Bankruptcy Court appointed you as trustee to administer the assets…
- Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable Required: Indicate how much money will be paid to the creditor associated with each debt. Types of Debts Administrative expenses Salary during last month owed to Mr. Key and Ms. Rankin Government claims to unpaid taxes Amounts $ 4,150 $ 7,700 19,525 4,150 5,930 8,250A company going through a Chapter 7 bankruptcy has the following account balances: Cash Receivables (25% collectible) Inventory (worth $34,850) Land (worth $253,000) (secures note payable) Buildings (worth $275,000) (secures bonds payable) Salaries payable (4 workers owed equal amounts for last 2 weeks) Accounts payable Note payable (secured by land) Bonds payable (secured by building) Common stock Retained earnings How much will be paid to each of the following? Answer is complete but not entirely correct. Salaries payable Accounts payable Note payable Bonds payable $ 19,500 $ 41,420 X $ 205,000 $275,000 $ 49,000 69,000 109,000 195,000 390,000 19,500 109,000 205,000 490,000 290,000 (235,000)Kent Co. filed a voluntary bankruptcy petition on August 15, 2008, and the statement of affairs reflects the following amounts: Assets Book value Estimated Market value Pledged with fully secured creditors P300,000 P370,000 Pledged with partially secured creditors 180,000 120,000 Free Assets 420,000 320,000 Liabilities With priority 70,000 Fully secured 260,000 Partially secured 200,000 Unsecured 540,000 What amount of cash will be available for unsecured creditors?
- Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,200 in free cash. The following debts, totaling $43,050, remain: Indicate how much money will be paid to the creditor associated with each debt.ENRON Company filed a voluntary bankruptcy petition on July 1, 2011 and the statement of affairs reflects the following amounts: BOOK ESTIMATED CARRYING CURRENT VALUE P185, 000 60, 000 160. 000 P 405. 000 VALUE Assets pledge with fully secure creditors Assets pledge with partially secured creditors Free Assets P150, 000 90, 000 Liability with priority Fully secured creditors Partially secured creditors Unsecured creditors 210, 000 P 450. 000 Liabilities P35, 000 130, 000 90, 000 270, 000 P 525, 000 3. Determine the amount to be received by partially secured creditors. В. Р78, 000 A. P90, 000 C. P60, 000 D. P72, 000Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,800 in free cash. The following debts, totaling $46,050, remain: $ 7,600 Government claims to unpaid taxes Salary during last month owed to Mr. Key (not an officer) Administrative expenses 19,425 4,050 Salary during last month owed to Ms. Rankin (not an officer) Unsecured accounts payable 6,825 8,150 Indicate how much money will be paid to the creditor associated with each debt. Types of Debts Amounts