creditors of jones corporation are considering petitioning the courts to force the c 738113
Creditors of Jones Corporation are considering petitioning the courts to force the company into Chapter 7 bankruptcy. The following information has been determined. Administrative expenses in connection with the liquidation are estimated to be $22,000. Indicate the amount of money that each class of creditors can anticipate receiving.
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Book V alue |
Net Realizable V alue |
|
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ 6,000 |
$ 6,000 |
|
Accounts receivable . . . . . . . . . . . . . . . . . . |
32,000 |
18,000 |
|
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . |
45,000 |
31,000 |
|
Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . |
3,000 |
–0– |
( continued )
|
Investments . . . . . . . . . . . . . . . . . . . . . . . . |
Book V alue $ 2,000 |
Net Realizable V alue $ 8,000 |
|
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
60,000 |
72,000 |
|
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . |
90,000 |
68,000 |
|
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . |
50,000 |
35,000 |
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Notes payable (secured by land) . . . . . . . . . |
65,000 |
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|
Notes payable (secured by buildings) . . . . . |
78,000 |
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|
Bonds payable (secured by equipment) . . . |
115,000 |
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Accounts payable. . . . . . . . . . . . . . . . . . . . |
70,000 |
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|
Salaries payable (two weeks’ salary for |
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|
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three employees) . . . . . . . . . . . . . . . . . . . |
6,000 |
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Taxes payable . . . . . . . . . . . . . . . . . . . . . . . |
10,000 |
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