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A company going through a Chapter 7 bankruptcy has the following account balances: Cash $ 48,000 Receivables (20% collectible) 68,000 Inventory (worth $54,500) 108,000 Land
A company going through a Chapter 7 bankruptcy has the following account balances:
Cash | $ | 48,000 | |
Receivables (20% collectible) | 68,000 | ||
Inventory (worth $54,500) | 108,000 | ||
Land (worth $246,000) (secures note payable) | 190,000 | ||
Buildings (worth $270,000) (secures bonds payable) | 380,000 | ||
Salaries payable (4 workers owed equal amounts for last 2 weeks) | 19,000 | ||
Accounts payable | 108,000 | ||
Note payable (secured by land) | 200,000 | ||
Bonds payable (secured by building) | 480,000 | ||
Common stock | 280,000 | ||
Retained earnings | (230,000 | ) | |
How much will be paid to each of the following?
Salaries Payable | |
Accounts Payable | |
Note Payable | |
Bonds Payable |
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