Question

A company going through a Chapter 7 bankruptcy has the following account balances:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000
Receivables (30% collectible) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Inventory (worth $39,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Land (worth $120,000) (secures note payable) . . . . . . . . . . . . . . . . 100,000
Buildings (worth $180,000) (secures bonds payable) . . . . . . . . . . . 200,000
Salaries payable (7 workers owed equal amounts for last 2 weeks) . 10,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Note payable (secured by land) . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000
Bonds payable (secured by building) . . . . . . . . . . . . . . . . . . . . . . . 300,000
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (140,000)

How much will be paid to each of the following?
Salaries payable
Accounts payable
Note payable
Bonds payable



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  • CreatedOctober 04, 2014
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