Olds Company declares Chapter 7 bankruptcy. The following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $27,000. 39,000 75,000 (valued at $43,000) 85,000 (valued at $71,000) 215,000 (valued at $175,000) 415,000 (valued at $350,000) 135,000 (value unknown) 195,000 35,000 200,000 265,000 315,000 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 The holders of note payable B want to collect at least $132,500. To achieve this goal, how much does the company have to receive in the liquidation of its equipment? Amount to be received
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- 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 $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?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. 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 31,000 192,000 261,000 311,000 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. Required: To achieve this goal, how much does the company have to receive in the liquidation of its equipment? Amount to be receivedOlds 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…
- 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.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 8,250Xavier Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $25,200 in free cash. The following debts, totaling $38,050, remain: 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 $6,000 17,825 2,450 5,225 6,550 Indicate how much money will be paid to the creditor associated with each debt. (Be sure to list liabilities in the order of priority.) Administrative expenses Salary during last month owed to Mr. Key and Ms. Rankin Government claims to unpaid taxes
- Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $26,600 in free cash. The following debts, totaling $45,050, remain: 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 $ 7,400 19,225 3,850 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 6,625 7,950 Answer is complete but not entirely correct. Amounts 3,850 $12.850 $ 3,716 $26,600 Government claims to unpaid taxeshi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the company retains only $27,400 in free cash. The following debts, totaling $49,050, remain: Government claims to unpaid taxes $ 8,200 Salary during last month owed to Mr. Key(not an officer) 20,025 Administrative expenses 4,650 Salary during last month owed to Ms. Rankin (not an officer) 7,425 Unsecured accounts payable 8,750 Indicate how much money will be paid to the creditor associated with each debt.Xavier 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