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O O O O Problem 4 (Items 23-25). Boyz2Men & Co. liquidates its corporate affairs. All non-cash assets have been converted to cash of 3,060,000.
O O O O Problem 4 (Items 23-25). Boyz2Men & Co. liquidates its corporate affairs. All non-cash assets have been converted to cash of 3,060,000. The following claims are approved by the trustee: Accounts payable 765,000 Trustee's fees and other costs of liquidation - 408,000 Mortgage payable (secured by property which realized 2,040,000) 1,530,000 Note payable (secured by accounts receivables of which 765,000 are collected and 255,000 were written off) - 1,020,000 Prepaid revenue (25,500 each from two customers who ordered products not yet delivered) - 51,000 Property taxes payable 102,000 Prepaid revenues are considered as unsecured liabilities WITH priority. Cash received from realization of properties and receivables are included in the 3,060,000 available cash. Answer the below items: 23. How much of the Accounts Payable and Notes payable (aggregated) will not be paid due to cash deficiency? a. 969,000 b. 1,007,862 c. 816,000 d. 777,138 O 24. How much Accounts payable and Notes payable (aggregated) will be paid? a. 969,000
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