4 5 A company files for protection under Chapter 11 Bankruptcy and has the following liabilities and equity accounts at the time the Accounts payable 280,000 Interest payable 80,000 Note payable - A 700,000 Note payable - B 500,000 7 Mortgage payable 180,000 5 Preferred Stock 300,000 9 Retained Earnings (150,000) 10 11 Later, when the Plan of Reorganization was approved the company had accumulated 15,000 additional current liabilities 12 The Plan of Reorganization outlined the following actions relating to Pre-petition accounts: 13 14 1 - The prepetition accounts payable will be restructured as follows 15 a - The creditors agree to accept cash payments totalling 230,000 as payment in full. 16 17 2 - The interest payable will be restructred as follows: 18 a- 60,000 will be paid in cash 19 - 20,000 will be eliminated 20 21 3 - The Note Payable A will be restructured as follows: 22 a -500,000 will be paid in cash 23b - 40,000 of the balance will be eliminated 4 - 160,000 will be converted into an unsecured note payable 5 The Note Payable B will be restructured as follows: a - The note will be partially paid with land having a market value of 275,000 h - 25.000 will be eliminated - The creditors agree to accept cash payments totalling 230,000 as payment in full 172 - The Interest payable will be restructred as follows: 12a-60,000 will be paid in cash 19 b - 20,000 will be eliminated 21 3 - The Note Payable A will be restructured as follows: 22 a-500,000 will be paid in cash 23 - 40,000 of the balance will be eliminated 24 - 160,000 will be converted into an unsecured note payable 25 26 4 - The Note Payable B will be restructured as follows: a - The note will be partially paid with land having a market value of 275,000 b - 25,000 will be eliminated c-20,000 shares of $10 common stock will be issued to the noteholder 28 9 5 -The Preferred stock will be provided for as follows: a - All the Preferred Stock will be exchanged for 15,000 shares of $10 par common stock REQUIRED VERSION Complete the Recovery Analysis below. RECOVERY ANALYSIS Balance Sheet Amounts Account Name a - The note will be partially paid with land having a market value of 275,000 b - 25,000 will be eliminated c-20,000 shares of $10 common stock will be issued to the noteholder 115-The Preferred stock will be provided for as follows: 32a - All the Preferred Stock will be exchanged for 15,000 shares of $10 par common stock RECOVERY ANALYSIS 34 REQUIRED VERSION 25 Complete the Recovery Analysis below. 36 37 98 Balance Sheet Account Name Amounts 39 40 41 42 43 Total Recovery Total % 15 6 7