A company files for protection under Chapter 11 Bankruptcy and has the following liabilities and equity accounts at the Accounts payable Interest payable Note payable - A Note payable - B Mortgage payable Preferred Stock Retained Earnings 280.000 80,000 700,000 500,000 180,000 300,000 (150,000) Later, when the plan of Reorganization was approved the company had accumulated 15,000 additional current liabi The Plan of Reorganization outlined the following actions relating to Pre-petition accounts: 1 - The prepetition accounts payable will be restructured as follows a - The creditors agree to accept cash payments totalling 230,000 as payment in full. 2 - The interest payable will be restructred as follows: a - 60,000 will be paid in cash b - 20,000 will be eliminated 3 - The Note Payable A will be restructured as follows: - 500,000 will be paid in cash - 40.000 of the balance will be eliminated - 160,000 will be converted into an unsecured note payable 3 5 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 Bb - 25,000 will be eliminated c-20,000 shares of $10 common stock will be issued to the noteholder 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 35 Complete the Recovery Am 36 37 38 Balance Sheet Account Name Amounts 39 40 41 42 43 45 46 47 48 19 RECOVERY ANALYSIS Total Recovery Total A company files for protection under Chapter 11 Bankruptcy and has the following liabilities and equity accounts at the Accounts payable Interest payable Note payable - A Note payable - B Mortgage payable Preferred Stock Retained Earnings 280.000 80,000 700,000 500,000 180,000 300,000 (150,000) Later, when the plan of Reorganization was approved the company had accumulated 15,000 additional current liabi The Plan of Reorganization outlined the following actions relating to Pre-petition accounts: 1 - The prepetition accounts payable will be restructured as follows a - The creditors agree to accept cash payments totalling 230,000 as payment in full. 2 - The interest payable will be restructred as follows: a - 60,000 will be paid in cash b - 20,000 will be eliminated 3 - The Note Payable A will be restructured as follows: - 500,000 will be paid in cash - 40.000 of the balance will be eliminated - 160,000 will be converted into an unsecured note payable 3 5 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 Bb - 25,000 will be eliminated c-20,000 shares of $10 common stock will be issued to the noteholder 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 35 Complete the Recovery Am 36 37 38 Balance Sheet Account Name Amounts 39 40 41 42 43 45 46 47 48 19 RECOVERY ANALYSIS Total Recovery Total