Anteium Company owes $80,000 on a note payable that is currently due. The note is held by

Question:

Anteium Company owes $80,000 on a note payable that is currently due. The note is held by a local bank and is secured by a mortgage lien attached to three acres of land worth $48,000. The land originally cost Anteium $31,000 when acquired several years ago. The only other account balances for this company are Investments of $20,000 (but worth $25,000), of $20,000, of $40,000, and a deficit of $89,000. Anteium is insolvent and attempting to arrange a reorganization so that the business can continue to operate. The reorganization value of the company is $82,000.
View each of the following as an independent situation:
a. On a statement of financial affairs, how would this note be reported? How would the land be shown?
b. Assume that Anteium develops an acceptable reorganization plan. Sixty percent of the common stock is transferred to the bank to settle that particular obligation. A 7 percent, three-year note payable for $5,000 is used to settle the How would Anteium record the reorganization?
c. Assume that Anteium is liquidated. The land and investments are sold for $50,000 and $26,000, respectively. Administrative expenses amount to $11,000. How much will the various parties collect?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...