1. A company has the following balance sheet: Plant and equipment $500,000 Loans payable $150,000 Mortgage...
1. A company has the following balance sheet:
|
Plant and equipment |
$500,000 |
Loans payable |
$150,000 |
|
Mortgage payable |
300,000 |
||
|
_______ |
Shareholders’ equity |
50,000 |
|
|
Total |
$500,000 |
Total |
$500,000 |
The plant and equipment has a realizable value of $350,000, and is pledged as security for the mortgage. The estimated deficiency to unsecured creditors is:
a. $ 50,000
b. $100,000
c. $150,000
d. $200,000
2. A company has the following balance sheet:
|
Inventory |
$ 60,000 |
Accounts payable |
$ 75,000 |
|
Equipment, net |
150,000 |
Loan payable |
180,000 |
|
_______ |
Shareholders’ equity |
(45,000) |
|
|
Total |
$210,000 |
Total |
$210,000 |
The inventory has a realizable value of $50,000, and the equipment has a realizable value of $140,000. The equipment secures the loan payable and the accounts payable are unsecured. The estimated deficiency to unsecured creditors is:
a. $115,000
b. $ 45,000
c. $140,000
d. $ 65,000
Homework Answers
Add Answer to:
1. A company has the following balance
sheet:
Plant and equipment
$500,000
Loans payable
$150,000
Mortgage...
Statement of Affairs The following information is available for Dennison Company, which is entering bankruptcy proceedings....
Statement of Affairs The following information is available for Dennison Company, which is entering bankruptcy proceedings. Net realizable values of Dennison’s assets: Cash $5,000 Accounts receivable 12,000 Inventory 40,000 Equipment 125,000 Dennison has the following claims against it: Accounts payable to suppliers $50,000 Priority liabilities 20,000 Note payable, secured by equipment with a realizable value of $90,000 60,000 Loan payable, secured by equipment with a realizable value of $25,000 100,000 Required Prepare a statement of affairs for Dennison Company, in...
Statement of Affairs Dellwood Corporation is experiencing difficulty in paying its bills and is considering filing...
Statement of Affairs Dellwood Corporation is experiencing difficulty in paying its bills and is considering filing for bankruptcy. Current data as of September 30, 2017, show the following: Assets Expected Realizable Value Cash $ 20,000 Accounts receivable 325,000 Inventory-materials 100,000 Inventory-finished goods 400,000 Land 200,000 Building 1,100,000 Trucks 45,000 Equipment 200,000 Liabilities Book Value Secured by Accounts payable $ 800,000 Bank loan 275,000 80% of receivables Wages payable 140,000 Taxes payable 75,000 Truck loan 70,000 Trucks with $30,000 estimated realizable...
Dellwood Corporation is experiencing difficulty in paying its bills and is considering filing for bankruptcy. Current...
Dellwood Corporation is experiencing difficulty in paying its
bills and is considering filing for bankruptcy. Current data as of
September 30, 2020, show the following:
Assets Expected Realizable Value $ 20,000 Cash Accounts receivable 300,000 Inventory-materials 90,000 Inventory-finished goods 400,000 Land 150,000 Building 1,000,000 Trucks 70,000 Equipment 200,000 Secured by Liabilities Book Value Accounts payable $740,000 Bank loan 275,000 80% of receivables Wages payable 160,000 Taxes payable 50,000 Truck loan 85,000 Trucks with $30,000 estimated realizable value Mortgage payable 600,000...
The following balance sheet has been prepared by the accountant for Limestone Company as of June...
The following balance sheet has been prepared by the accountant
for Limestone Company as of June 3, 2020, the date on which the
company is to file a voluntary petition of bankruptcy:
LIMESTONE COMPANY
Balance Sheet
June 3, 2020
Assets
Cash
$
12,000
Accounts receivable (net)
74,000
Inventory
106,000
Land
109,000
Buildings (net)
309,000
Equipment (net)
198,000
Total assets
$
808,000
Liabilities and Equities
Accounts payable
$
116,000
Notes payable—current (secured by equipment)
268,000
Notes payable—long-term (secured by land and...
Inventory with a book value of $240,000 and realizable value of $175,000 is security for notes...
Inventory with a book value of $240,000 and realizable value of
$175,000 is security for notes payable of $145,000. The equipment
secures the remaining notes payable. Expected realizable values of
the assets are:
Deficiency to Unsecured Creditors Consider the following information for Evans, Inc. when the company entered bankruptcy proceedings: Account Balance per Books Dr (Cr) $31,700 646,800 Cash 320,000 10,600 750,000 123,500 Accounts receivable Inventory Prepaid expenses Buildings, net Equipment, net Goodwill Wages payable Taxes payable Accounts payable Notes...
The following balance sheet has been prepared by the accountant for Limestone Company as of June...
The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company Is to file a voluntary petition of bankruptcy: LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets 6, eee 68,eee 94, eee Cash $ Accounts receivable (net) Inventory Land 103,eee 303,eee 186,eee Buildings (net) Equipment (net) $ 760,00e Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and...
The following balance sheet has been prepared by the accountant for Limestone Company as of June...
The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities $ 6,...
The following balance sheet has been prepared by the accountant for Limestone Company as of June...
The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company is to file a voluntary petition of bankruptcy: $ LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities 4,000...
3 The following balance sheet has been prepared by the accountant for Limestone Company as of...
3 The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy: 58 Ints eBook LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long-term (secured by land and buildings) Common stock Retained earnings Total liabilities and...
Help Save & EN Submit Check my work 3 The following balance sheet has been prepared...
Help Save & EN Submit Check my work 3 The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy: 6.68 points eBook Print LIMESTONE COMPANY Balance sheet June 3, 2020 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long-term (secured by land...
Dellwood Corporation is experiencing difficulty in paying its
bills and is considering filing for bankruptcy. Current data as of
September 30, 2020, show the following:
Assets Expected Realizable Value $ 20,000 Cash Accounts receivable 300,000 Inventory-materials 90,000 Inventory-finished goods 400,000 Land 150,000 Building 1,000,000 Trucks 70,000 Equipment 200,000 Secured by Liabilities Book Value Accounts payable $740,000 Bank loan 275,000 80% of receivables Wages payable 160,000 Taxes payable 50,000 Truck loan 85,000 Trucks with $30,000 estimated realizable value Mortgage payable 600,000...
The following balance sheet has been prepared by the accountant
for Limestone Company as of June 3, 2020, the date on which the
company is to file a voluntary petition of bankruptcy:
LIMESTONE COMPANY
Balance Sheet
June 3, 2020
Assets
Cash
$
12,000
Accounts receivable (net)
74,000
Inventory
106,000
Land
109,000
Buildings (net)
309,000
Equipment (net)
198,000
Total assets
$
808,000
Liabilities and Equities
Accounts payable
$
116,000
Notes payable—current (secured by equipment)
268,000
Notes payable—long-term (secured by land and...
Inventory with a book value of $240,000 and realizable value of
$175,000 is security for notes payable of $145,000. The equipment
secures the remaining notes payable. Expected realizable values of
the assets are:
Deficiency to Unsecured Creditors Consider the following information for Evans, Inc. when the company entered bankruptcy proceedings: Account Balance per Books Dr (Cr) $31,700 646,800 Cash 320,000 10,600 750,000 123,500 Accounts receivable Inventory Prepaid expenses Buildings, net Equipment, net Goodwill Wages payable Taxes payable Accounts payable Notes...
The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company Is to file a voluntary petition of bankruptcy: LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets 6, eee 68,eee 94, eee Cash $ Accounts receivable (net) Inventory Land 103,eee 303,eee 186,eee Buildings (net) Equipment (net) $ 760,00e Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and...
The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities $ 6,...
The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company is to file a voluntary petition of bankruptcy: $ LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities 4,000...
3 The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy: 58 Ints eBook LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long-term (secured by land and buildings) Common stock Retained earnings Total liabilities and...
Help Save & EN Submit Check my work 3 The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy: 6.68 points eBook Print LIMESTONE COMPANY Balance sheet June 3, 2020 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long-term (secured by land...
Most questions answered within 3 hours.
-
You are a monopolist and know that your consumers have a linear
demand curve. At what...
asked 39 seconds ago -
Which of the following are true about the strength of the
association between two variables?
1-...
asked 1 minute ago -
Raising a heavy load requires work. Raising it in half the time
requires:
asked 7 minutes ago -
Calculate the number of valence electrons for
[Mo(C6H6)(CO)3]
asked 5 minutes ago -
MGT-201: Marketing Management
Before deciding on the structure of the channel marketers must
take several factors...
asked 6 minutes ago -
1. ACLs allow a router to control traffic within a network. The
concept is very similar...
asked 8 minutes ago -
35. When the electron in a hydrogen atom falls from its first
excited energy level to...
asked 10 minutes ago -
A man is dragging a box of mass "m" by using a rope which rests
on...
asked 26 minutes ago -
Liquid octane
(CH3(CH2)6CH3) will
react with gaseous oxygen (O2) to produce gaseous carbon
dioxide (CO2) and...
asked 27 minutes ago -
For the reaction N2(g) +
O2(g) --> 2NO(g), if the initial
concentration of NO was 0.00M...
asked 30 minutes ago -
On a recent quiz, the class mean was 75 with a standard
deviation of 2.2. Calculate...
asked 46 minutes ago -
Discuss the Coefficient of Restitution in an elastic collision
compared to the Coefficient of Restitution in...
asked 51 minutes ago