XYZ Company went out of business and was sold to pay off as much debt as possible. It showed the following information on its balance sheet. What, if any revenue will the shareholders receive? Current assets $700,000 Fixed assets $1,500,000 Current liabilities $387,000 Long-term liabilities $945,000 (A) $868,000 (B) $313,000 (C) $168,000 (D) $-632,000
Q: Peakhurst Limited had the following trial balance at 1 January 2016:…
A: 1)
Q: Shown below is an income statement for 2020 that was prepared by a poorly trained bookkeeper of…
A: Proforma of multi-step income statement To get clear idea about what is added and deducted…
Q: uthwestern Wear Inc. has the following balance sheet: $1,875,000 Accounts payable $ 375,000 rrent…
A: General creditors refer to the creditors who lend money to the borrower but they don't have an…
Q: On Monday, ABC candy company’s entire balance sheet comprised real assets of $500 million and cash…
A: Line of Credit is the amount the bank has agreed upon to lend on credit. At any point of time, we…
Q: An analysis of the annual financial statements of Conner Corporation reveals the following:a. The…
A:
Q: A corporation had the following assets and liabilities at the beginning and end of this year. Assets…
A: An accounting equation is a mathematical representation of financial transactions. It shows as total…
Q: The company is subject to 30% income tax. How much is the net income (net loss) during 2020?
A: 1. Assets: P133,500 increase Liabilities: P40,500 decrease Ordinary share capital: P90,000 increase…
Q: Assume Allen incurs a $6,100 operating loss. The remaining assets are sold for the value shown on…
A: Accounting Equation :— It states that companies assets is equal to total liabilities plus…
Q: The following information is for Ayayai Corporation as of December 31, 2017. Restricted Cash for…
A: A balance sheet is a financial statement that details the assets, liabilities, and shareholder…
Q: The following accounts are extracted from the worksheet of X Company on December 31, 2020: Income…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: A corporation had the following assets and liabilities at the beginning and end of this year. Assets…
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…
Q: The following balances were ascertained in NOMONEY Corp. which is experiencing insolvency: Cash…
A: The question is related to Liquidation. The details are given.
Q: Galactic Universe Company had the following financial information: 2018 P 1,350,000 P 1,000,000…
A: To analyze that how much an organization has earned revenue or incurred expenses in an accounting…
Q: ABC Corporation is experiencing difficulty in paying its bills and is considering filing for…
A: Secured creditors comprises of Wages payable And Taxes payable
Q: ABC Corporation reported a net loss of $(115,000) for the year 2020. Over the course of that year,…
A: Cash flow statement is used to evaluate the cash flows from various activities during a given period…
Q: Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay…
A: Liquidation refers to winding up of a business. A statement of net affairs is prepared which shows…
Q: The following is the excerpt of financial information of Dreamies Corporation on December 31, 2022:…
A: Solution:- Return on Equity (ROE) means the percentage of net income earned on the shareholder's…
Q: Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay…
A:
Q: THE STATEMENT OF PROFIT OR LOSS AND THE STATEMENT OF CHANGES IN EQUITY High Sky Ltd incurred the…
A: The statement of profit or loss is the part of the financial statement prepared at the end of the…
Q: Consider the following potential events that might have occurred to Global on December 30, 2019. For…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The following are selected accounts and balances for Mergaronite Company and Hill, Inc., as of…
A: 1. Consolidated totals for the following accounts as on December 31, 2021: Revenue Particulars…
Q: Holy Company provided the following increase (decrease) in ledger account balances during the…
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay…
A: Since there are multiple sub-parts, we will solve first three for you. To get the remaining…
Q: The following table shows some selected financial information of Delos Company. According to the…
A: Return on assets means total return earned on the total assets of the business. It includes current…
Q: "The Statement of Financial Position of Charles Corporation shows Total Assets of P1,500,000,…
A: Solution: Ending capital balance = total assets - current liabilities - non current liabilities =…
Q: Lugena Company has been forced into bankruptcy as of April 30 because of its inability to pay its…
A: The liquidation process of the company is required when the court gives order for…
Q: K2 Corporation has assets of $2,400,000, common stock of $624,000, and retained earnings of…
A: We have the following information: Assets: $2,400,000 Common Stock: $624,000 Retained Earnings:…
Q: Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay…
A: Liquidation is a state where business comes to an end and assets are distributed to claimants.
Q: Martinez Company at December 31 has cash $46,500, noncash assets $212,000, liabilities $130,000, and…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Holmes Corporation has filed a voluntary petition with the bankruptcy court in hopes of…
A:
Q: Choose the correct. The New England Company has a debt to a bank of $55,000. The company is…
A: According to liquidated basis liability should be reported at actual value. Expected payment of…
Q: Peakhurst Limited had the following trial balance at 1 January 2016: Debit $ Credit $ Cash 200 000…
A: Journal: It is the first step of recording financial transactions. It is used to prepare the…
Q: Peakhurst Limited had the following trial balance at 1 January 2016: Debit $ Credit $ Cash 200…
A: Journal entry is a record of financial transaction in the books of accounts maintained by an…
Q: Compute the missing amounts for each of the following businesses. Using the information given,…
A: The accounting equation refers to the equation of the balance sheet. It is based on the method of…
Q: Because of the inability to pay debts, Steven Company has been forced into bankruptcy as of April…
A: Recovery percentage is calculated by the dividing the actual amount collected by total amount which…
Q: The following amounts were taken from the statement of affairs for Aray Company: Unsecured…
A: Free assets are those assets whose net realizable value is greater than its historical cost. Total…
Q: The NOT A CHANCE Company had a bad financial condition caused by deficiency of liquid asset. On June…
A: Solution Working note Amount realized =80% of account receivable +inventory…
Q: Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay…
A: Since there are multi-sub-parts, we will solve first three for you. To get the remaining sub-parts…
Q: Consider the following potential events that might have occurred to Global on December 30, 2019. For…
A: Effect of Transactions: Every business transaction has a two-fold impact on the aspects of…
Q: The New England Company has a debt to a bank of $55,000. The company is currently being liquidated…
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: POP Inc is to be liquidated and has the following liabilities: income taxes payable 42,805 wages…
A: Asset Other Information Value in the Balance Sheet Realizable Value Revaluation Details Calculations…
Q: Consider the following potential events that might have taken place at Global Conglomerate on…
A: Book value of equity refers to the value in balance sheet that represents the equity shares of the…
Q: A corporation had the following assets and liabilities at the beginning and end of this year.…
A: First Step is to find Beginning as well as Ending Equity balance A Beginning Assets $76,000…
Q: BC Company went to the bank and borrowed $100,000 from the bank. What happens to the business…
A: Basic foundation of accounting is that total assets must be equal to the sum of equity and…
Q: ing the following information, prepare a statement of financial affairs in good form. Here’s the…
A: A Statement of Affairs is a document detailing a company's assets and liabilities. Generally…
Q: A corporation had the following assets and liabilities at the beginning and end of this year. Assets…
A: Ending balance of equity can be calculated by adding up net income and deducting dividends from the…
XYZ Company went out of business and was sold to pay off as much debt as possible. It showed the following information on its balance sheet. What, if any revenue will the shareholders receive?
Current assets $700,000
Fixed assets $1,500,000
Current liabilities $387,000
Long-term liabilities $945,000
(A) $868,000
(B) $313,000
(C) $168,000
(D) $-632,000
Step by step
Solved in 2 steps
- The New England Company has a debt to a bank of $55,000. The company is currently being liquidated and believes that between $12,000 and $20,000 will be paid on that debt. According to the liquidation basis of accounting, what amount is reported for this liability?a. $12,000b. $16,000c. $20,000d. $55,000The following items were displayed in the statement of affairs of a Corporation: Unsecured liabilities without priority P100,000 Stockholder's equity 40,000 Loss on realization of assets 30,000 Estimated taxes and administrative costs that have not been entered in the records 10,000 Unsecured creditors with priority 15.000 Based on the foregoing information, how much should the unsecured creditors without priority expect to receive on the liquidation?Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay its debts. The statement of financial position on that date shows: ASSETS LIABILITIES & EQUITY P5,400 78,700 37,000 175,700 1,900 122,500 Accounts Payable Notes Payable – PNB Notes Payable – suppliers Accrued wages Accrued taxes Mortgage Bonds Payable Common stock – P100 par Retained Earnings Total Liabilities & Equity P105,000 30,000 102,500 3,700 9,300 180,000 150,000 (61,700) P518,800 Cash Accounts Receivable Note Receivable Inventory Prepaid Expenses Land and Building Equipment, net 97,600 Total Assets P518,800 Additional information: a. Accounts receivable of P32,220 and notes receivable of P25,000 are expected to be collectible. The good notes are pledged to Philippine National Bank. b. Inventories are expected to bring in P90,200 when sold under bankruptcy conditions. c. Land and buildings have an appraised value of P190,000. They serve as security on the bonds. d. The current value…
- Below is selected information for Cari Corp. and Nick, Inc. for fiscal 2014. Compute each company's Z-score and provide an analysis of whether either company is expected to go bankrupt in the near ------------- future. - -- . Cari Corp. $683,140 Nick, Inc. $488,974 Current assets Current liabilities 445,691 1,187,598 527,588 1,027,966 Total assets |Total liabilities 632,855 211,000 884,771 289,455 Shares outstanding Retained earnings Stock price per share 296,988 -25,412 $47.86 $9.56 Sales 1,254,110 288,977 855,741 18,569 Earnings before interest and taxesABC Corporation has become insolvent and a statement of affairs is being prepared. The following data are given. Market value of assets pledged with fully secured creditors 150,000 Fully secured creditors 50,000 Market value of assets pledged with partly secured creditors 90,000 Partly secured creditors 150,000 Creditors with priority 46,000 Unsecured creditors 80,000 Free assets 76,000 How much is the estimated amount available?Blossom Political Consultants management has decided to discontinue all of the firm's business operations. The firm has total debt of $5.90 million, and the liquidation value of its assets is $11.00 million. If the book value of the firm's equity is $5.50 million, then what will be the amount of the liquidating dividend when the firm liquidates all of its assets? (Round answer to 2 decimal places, e.g. 15.25.)
- A company that was to be liquidated had the following liabilities: Income taxes $ 10,400 Notes payable (secured by land) Accounts payable 156,000 $107,900 Salaries payable to employees ($16,000 for John Jay and $2,800 for Ann Still) Bonds payable Administrative expenses for liquidation 18,800 81,000 26,000 The company had the following assets: Вook Fair Value Value $104,000 $ 42,900 130,000 Current assets Land 117,000 Buildings & equipment 130,000 143,000 Prepare a schedule to show the amount of total assets available to pay liabilities with priority and unsecured creditors. Short Answer Toolbar navigation BI U S : : > !!!33. Integrity, Inc is insolvent and its statement of affairs show: Estimated gain on realization of assets P2,000,000 Estimated loss on realization of assets 2,560,000 Additional assets, 1,200,000 Additional liabilities 960,000 Ordinary shares 12,000,000 Deficit 11,200,000 The pro-rata payment to stockholders on the peso isThe following information are related to JVCD Corporation which is undergoing liquidation: a. A bank loan amounting to P455,000 is secured by inventories with book value of P525,000 and net realizable value of P350,000. b. Of the P1,120,000 accounts payable, P343,000 is secured by accounts receivable amounting to P413,000 which is 10% uncollectible. c. Property and equipment costing P875,000 and which is depreciated by 20% has a net realizable value of P588,000. d. Other unrecorded liabilities are accrued interest payable on bank loan, P45,500; salaries payable, P112,000; taxes payable, P63,000 and trustee’s fee, P52,500. e. Cash available before liquidation amounts to P87,500. Compute for the estimated deficiency to unsecured creditors. A. 450,800 B. 882,000 C. 927,500 D. 980,000
- POP Inc is to be liquidated and has the following liabilities: income taxes payable 42,805 wages payable 157,320 accounts payable (including customers credit balances of 50,000) 1,380,000 bonds payable(including interests of 50,000) 1,250,000 notes payable( excluding interests of 20,000) 670,000 The company's asset is composed of the following at their book values: cash 100,000 accounts receivable(including customer's credit balances mentioned above) 500,000 inventory (used as security for the notes) 330,000 land and building (used as security for the bonds) 1,500,000 comparing to their net realizable values, the followinghas been determined: - 20% of the accounts receivable is worthless - 1/3 of the inventory owned by the company is worthless - land and building is undervalued by 500,000 How much will be recovered by creditors from the account payable? Round off answers to two decimal placesA company that was to be liquidated had the following liabilities: $ 10,400 Income taxes Notes payable (secured by land) Accounts payable Salaries payable to employees ($16,000 for John Jay and $2,800 for Ann Still) Bonds payable Administrative expenses for liquidation 156,000 $107,900 18,800 81,000 26,000 The company had the following assets: Вook Fair Value Value Current assets $104,000 $ 42,900 130,000 Land 117,000 Buildings & equipment 130,000 143,000 Prepare a schedule to show the amount of total liabilities with priority. Short Answer Toolbar navigation BI U S : : E a E V AA company that was to be liquidated had the following liabilities: $ 10,400 Income taxes Notes payable (secured by land) Accounts payable 156,000 $107,900 Salaries payable to employees ($16,000 for John Jay and $2,800 for Ann Still) Bonds payable Administrative expenses for liquidation 18,800 81,000 26,000 The company had the following assets: Вook Fair Value value Current assets $104,000 $ 42,900 130,000 Land 117,000 Buildings & 130,000 143,000 equipment Prepare a schedule to show the amount of total unsecured non-priority liabilities. Short Answer Toolbar navigation BI U S : : E E E V