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A company going through a Chapter 7 bankruptcy has the following account balances: Cash $ 39,000 Receivables (25% collectible) 59,000 Inventory (worth $51,550) 99,000 Land
A company going through a Chapter 7 bankruptcy has the following account balances:
Cash | $ | 39,000 | |
Receivables (25% collectible) | 59,000 | ||
Inventory (worth $51,550) | 99,000 | ||
Land (worth $183,000) (secures note payable) | 145,000 | ||
Buildings (worth $225,000) (secures bonds payable) | 290,000 | ||
Salaries payable (4 workers owed equal amounts for last 2 weeks) | 14,500 | ||
Accounts payable | 99,000 | ||
Note payable (secured by land) | 155,000 | ||
Bonds payable (secured by building) | 390,000 | ||
Common stock | 190,000 | ||
Retained earnings | (185,000 | ) | |
How much will be paid to each of the following?
Salaries payable $14,500
Accounts payable
Note payable
Bonds payable
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