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52. What information is included on the statement of realization and
liquidation?
53. What are some of the common elements that can be included in a
reorganization proposal?
54. Who must accept and confirm the Reorganization plan?
55. How is the presentation of an income statement during a reorganization
different from a normal income statement?
56. How is the presentation of a balance sheet during a reorganization
different from a normal balance sheet?
57. A company that was to be liquidated had the following liabilities:
The company had the following assets:
Total assets available to pay liabilities with priority and unsecured creditors are
calculated to be what amount?
58. A company that was to be liquidated had the following liabilities:
The company had the following assets:
Total liabilities with priority are calculated to be what amount?
59. A company that was to be liquidated had the following liabilities:
The company had the following assets:
Required:
Assets available for unsecured creditors after payment of liabilities with priority
are calculated to be what amount?
60. A company that was to be liquidated had the following liabilities:
The company had the following assets:
Total unsecured non-priority liabilities are calculated to be what amount?
61. A company that was to be liquidated had the following liabilities:
The company had the following assets:
Total payment on notes payable is calculated to be what amount? (Round the
payout percentage to one decimal place.)
62. Bazley Co. had severe financial difficulties and was considering the
possibility of filing a bankruptcy petition. At that time, the company had the
following assets (stated at net realizable value) and liabilities.
In a liquidation, total assets available to pay liabilities with priority and
unsecured creditors are calculated to be what amount?
63. Bazley Co. had severe financial difficulties and was considering the
possibility of filing a bankruptcy petition. At that time, the company had the
following assets (stated at net realizable value) and liabilities.
Assets that are available for unsecured creditors after payment of liabilities with
priority are calculated to be what amount?
64. Bazley Co. had severe financial difficulties and was considering the
possibility of filing a bankruptcy petition. At that time, the company had the
following assets (stated at net realizable value) and liabilities.
Total unsecured liabilities are calculated to be what amount?
65. Bazley Co. had severe financial difficulties and was considering the
possibility of filing a bankruptcy petition. At that time, the company had the
following assets (stated at net realizable value) and liabilities.
Total payment on partially secured debt is calculated to be what amount?
66. Lucky Co. had
cash
of $65,000,
inventory
worth $117,000, and a
building
worth $169,000. Unfortunately, the company also had
accounts payable
of
$234,000, a
note payable
of $104,000 (secured by the inventory),
liabilities with
priority
of $26,000, and a
bond payable
of $195,000 (secured by the building).
In a Chapter 7 bankruptcy, total assets available to pay liabilities with priority
and unsecured creditors are calculated to be what amount?
67. Lucky Co. had
cash
of $65,000,
inventory
worth $117,000, and a
building
worth $169,000. Unfortunately, the company also had
accounts payable
of
$234,000, a
note payable
of $104,000 (secured by the inventory),
liabilities with
priority
of $26,000, and a
bond payable
of $195,000 (secured by the building).
Assets available for unsecured creditors after payment of liabilities with priority
are calculated to be what amount?
68. Lucky Co. had
cash
of $65,000,
inventory
worth $117,000, and a
building
worth $169,000. Unfortunately, the company also had
accounts payable
of
$234,000, a
note payable
of $104,000 (secured by the inventory),
liabilities with
priority
of $26,000, and a
bond payable
of $195,000 (secured by the building).
Total unsecured liabilities are calculated to be what amount?
69. Lucky Co. had
cash
of $65,000,
inventory
worth $117,000, and a
building
worth $169,000. Unfortunately, the company also had
accounts payable
of
$234,000, a
note payable
of $104,000 (secured by the inventory),
liabilities with
priority
of $26,000, and a
bond payable
of $195,000 (secured by the building).
Total payment on the bond is calculated to be what amount?
70. Lucky Co. had
cash
of $65,000,
inventory
worth $117,000, and a
building
worth $169,000. Unfortunately, the company also had
accounts payable
of
$234,000, a
note payable
of $104,000 (secured by the inventory),
liabilities with
priority
of $26,000, and a
bond payable
of $195,000 (secured by the building).
A
statement of financial affairs
created for an insolvent corporation that was
beginning the liquidation process disclosed the following data (assets were
shown at
net realizable values
):
Required:
How much money appears to be available for unsecured creditors after payment
of liabilities with priority?
71. Mount Inc. was a hardware store that operated in Boise, Idaho.
Management made some poor inventory acquisitions that loaded the store with
unsalable merchandise. Due to the decline in revenues, the company became
insolvent. Following is a trial balance as of March 15, 2011, the day the company
filed for Chapter 7 liquidation.
Company officials believed that sixty percent of the accounts receivable could be
collected if the company was liquidated. The building and land had a fair value of
$97,500, while the equipment was worth $24,700. The investments represented
shares of a publicly traded company that could be sold at the time for $27,300.
The entire inventory could be sold for only $42,900. Administrative expenses
necessary to carry out a liquidation would have approximated $20,800.
Required:
Prepare a
statement of financial affairs
for Mount Inc. as of March 15, 2011.
72. Mount Inc. was a hardware store that operated in Boise, Idaho.
Management made some poor inventory acquisitions that loaded the store with
unsalable merchandise. Due to the decline in revenues, the company became
insolvent. Following is a trial balance as of March 15, 2011, the day the company
filed for Chapter 7 liquidation.
Company officials believed that sixty percent of the accounts receivable could be
collected if the company was liquidated. The building and land had a fair value of
$97,500, while the equipment was worth $24,700. The investments represented
shares of a publicly traded company that could be sold at the time for $27,300.
The entire inventory could be sold for only $42,900. Administrative expenses
necessary to carry out a liquidation would have approximated $20,800.
Assume that the company was being liquidated and that the following
transactions occurred:
