The company has the following asset accounts: Book Value Fair Value Accounts receivable Inventory Land and...

 

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The company has the following asset accounts: Book Value Fair Value Accounts receivable Inventory Land and buildings Equipment $ 70,000 $ 50,000 104,000 601,000 50,000 77,000 610,000 40,000 The company's liabilities will be settled as follows. Assume that all notes will be issued at reasonable interest rates. Accounts payable of $85,000 will be settled with a note for $10,000. These creditors will also get 3,000 shares of the stock contributed by the owners. Accrued expenses of $40,000 will be settled with a note for $9,000. Note payable of $105,000 (due 2024) was fully secured and has not been renegotiated. Note payable of $300,000 (due 2023) will be settled with a note for $55,000 and 14,000 shares of the stock contributed by the owners. Note payable of $300,000 (due 2021) will be settled with a note for $76,000 and 11,000 shares of the stock contributed by the owners. Note payable of $147,000 (due 2022) will be settled with a note for $115,000. The company has a reorganization value of $930,000. Prepare all journal entries for Ristoni so that the company can emerge from the bankruptcy proceeding. (Do not round intermediat calculations. Round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list The company has the following asset accounts: Book Value Fair Value Accounts receivable Inventory Land and buildings Equipment $ 70,000 $ 50,000 104,000 601,000 50,000 77,000 610,000 40,000 The company's liabilities will be settled as follows. Assume that all notes will be issued at reasonable interest rates. Accounts payable of $85,000 will be settled with a note for $10,000. These creditors will also get 3,000 shares of the stock contributed by the owners. Accrued expenses of $40,000 will be settled with a note for $9,000. Note payable of $105,000 (due 2024) was fully secured and has not been renegotiated. Note payable of $300,000 (due 2023) will be settled with a note for $55,000 and 14,000 shares of the stock contributed by the owners. Note payable of $300,000 (due 2021) will be settled with a note for $76,000 and 11,000 shares of the stock contributed by the owners. Note payable of $147,000 (due 2022) will be settled with a note for $115,000. The company has a reorganization value of $930,000. Prepare all journal entries for Ristoni so that the company can emerge from the bankruptcy proceeding. (Do not round intermediat calculations. Round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list

Answer rating: 100% (QA)

To prepare the journal entries for Ristoni to emerge from bankruptcy proceeding we need to account f... View the full answer