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Andrew [12]
3 years ago
8

A company enters Chapter 7 bankruptcy proceedings. Its balance sheet, prepared using GAAP for a company with continuing operatio

ns, is as follows: Cash $ 15,000 Accounts payable $ 90,000 Inventories 100,000 Loans payable 300,000 Plant and equipment, net 250,000 Equity (deficit) (25,000) Total $365,000 Total $365,000 2. The plant and equipment is security for one of the loans, with a balance of $130,000. The other liabilities are unsecured. The following transactions occur: * Inventories with a book value of $60,000 were sold for $40,000. * The plant and equipment was sold for $200,000. The loan secured by the plant and equipment was paid. * Wages and administrative expenses of $10,000 were accrued. * An initial payment of 40 cents per dollar of indebtedness was paid to the unsecured creditors. 3. The statement of realization and liquidation reports total "assets not realized" of:________.
A. $ 40,000
B. $ 60,000
C. $ 61,000
D. $150,000
Business
1 answer:
Andrej [43]3 years ago
5 0

Answer:

A) $ 40,000

Explanation:

Cash $ 15,000

Inventories $100,000

Plant and equipment, net $250,000

total assets $365,000

Accounts payable $ 90,000

Loans payable $300,000

Equity (deficit) ($25,000)

total liabilities and equity $365,000

Assets not realized would be assets that are left over and haven't been sold  yet (or converted to cash) by the trustee

  • inventories = $100,000 total - $60,000 realized = <u>$40,000 not realized</u>
  • plant and equipment was all sold
  • cash doesn't have to be realized
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In addition to the consumer product safety commission, the two federal agencies that play the most active role in protecting the
Ad libitum [116K]

In addition to the consumer product safety commission, the two federal agencies that play the most active role in protecting the public from unsafe products are the Treasury Department, the Commerce Department, and the Office of the U.S. Trade Representative.

The U.S. Consumer Product Safety Commission is an independent federal regulatory agency that was created by Congress in the Consumer Product Safety Act. The Consumer Product Safety Commission protects the public from unreasonable risks of serious injury or death from thousands of types of consumer products under its jurisdiction, including products that pose a fire, electrical, chemical, or mechanical hazard or can injure children.

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5 0
10 months ago
During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to sharehol
gizmo_the_mogwai [7]

Answer:

Eastern Data Links Corporation

Journal entries

Step 1.

Issuance for Common stock at a premium in exchange for cash

Feb 12,

Dr. Cash account with $18,000,000

Cr. $1 Ordinary share Capital Account with $2,000,000

Cr. Ordinary share premium Account with $16,000,000

(Being $18million received for 2million shares valued at $1 and sold at a premium of $9)

Step 2.

Issuance for Common stock at a premium in settlement of a liability due

Feb 13,

Dr. Accounts Payable account with $360,000

Cr. $1 Ordinary share Capital Account with $40,000

Cr. Ordinary share premium Account with $320,000

(Being $360,000 legal expense liquidation in exchange of 40,000 shares valued at $1 and sold at a premium of $9)

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3 years ago
Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for Oc
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Answer:

Labor Efficiency Variance=268 Unfavorable

Labor Rate Variance= $ 150 Favorable

Total Direct Labor Cost Variance= $ 118

Work In Process $ 6432 debit

Explanation:

Glacier Bicycle Company

Quantity of direct labor used 500 hrs.

Actual rate for direct labor $13.10 per hr.

Standard direct labor per bicycle 2 hrs.

Standard rate for direct labor $13.40 per hr

The labor efficiency variance= (Standard Hours allowed  * standard labor Rate )- (  Actual Hours  * standard labor Rate )

Labor Efficiency Variance= (SH* SR)- (AH*SR)

Labor Efficiency Variance= ( 2* 240 *13.4) - (500* 13.4)

Labor Efficiency Variance= ( 480*13.4) - (500* 13.4)

Labor Efficiency Variance= $ 6432- $ 6700= 268 Unfavorable

Labor Rate Variance= (actual hours * actual rate) - (actual hours* standard rate)

Labor Rate Variance= ( 500 *13.1) - (500*13.4)= 6550-6700= $ 150 Favorable

Total Direct Labor Cost Variance=  Labor Efficiency Variance + Labor Rate Variance

Total Direct Labor Cost Variance= 268 Unfavorable +$ 150 Favorable

Total Direct Labor Cost Variance= $ 118

Work In Process $ 6432 debit

Labor Efficiency Variance  268 Unfavorable debit

Labor Rate Variance$ 150 Favorable credit

Accrued Payroll $ 6550 credit

5 0
3 years ago
Chicago Company reported the following information at the end of the current year
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Answer:

37,000 common stock outstanding

preferred stock dividends = $82,000 x 10% = $8,200

Case A The preferred stock is noncumulative, the total amount of dividends is $32.000

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since the preferred stocks are non-cumulative, if dividends are not paid during a certain they are "lost" and will not be recovered.

Case B The preferred stock is cumulative, the total amount of dividends is $24,600

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  • dividends distributed to common stockholders = $0

Case C The pretend stock is cumulative, the total amount of all dividends is $90,200

  • dividends distributed to preferred stockholders = $8,200 x 3 = $24,600
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Like any effective salesperson, Frazer walks into a customer's office, shakes hands, looks the customer in the eye, and smiles.
alukav5142 [94]

Answer:

Option C                                

Explanation:

Frazer should immediately start making the base for the deal with the customer, therefrom, he should determine which price tom quote as the price plays the most important role in every deal. All other factors such as presence of time and selection of products are usually pre- determined by an effective sales man during the preview of the customer in the initial research.

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