Dd1.Please help this is the 4th time I have posted this question. The ones with checks are CORRECT, I need help with the red X entries RequiredCompute the estimated deficiency to unsecured creditors.Do not use negative signs with any of your answers below.Assets pledged to fully-secured creditorsLess: Liabilities to fully-secured creditorsAvailable as free assetsUnpledged assetsLess: Unsecured liabilities with priorityNet free assetsLiabilities to partially-secured creditorsLess: Assets pledged to partially-secured creditorsUnsecured portionUnsecured liabilitiesTotal unsecured liabilitiesEstimated deficiency to unsecured creditorsSSSSS85,0000x0x0x125,0000 x50,000 ✓35,000 ✓15,000 ✓980,000 ✓995,0000 x Deficiency to Unsecured CreditorsConsider the following information for Evans, Inc. when the company entered bankruptcy proceedings:Balance per BooksDr (Cr)AccountCashAccounts receivableInventoryPrepaid expensesBuildings, netEquipment, netGoodwillWages payableTaxes payableAccounts payableNotes payableCommon stockRetained earnings-deficitTotal$30,500600,000100,00014,200800,000125,000100,000(80,000)(45,000)(980,000)(305,000)(800,000)440,30050Inventory with a book value of $240,000 and realizable value of $35,000 is security for notes payable of $50,000. The equipment secures the remaining notes payable. Expected realizable valuesof the assets are:Accounts receivable $400,000Inventory150,000Buildings340,000Equipment75,000The prepaid expenses and goodwill have a realizable value of zero. The entire wages payable balance is a priority liability.

Liquidation is the legal process by with the company comes to an end. A company comes into being…

Buildings, net Equipment, net Goodwill Wages payable Taxes payable Accounts payable Notes payable Common stock Retained earnings-deficit Total 800,000 125,000 100,000 (80,000) (45,000) (980,000) (305,000) (800,000) 440,300 50 Inventory with a book value of $240,000 and realizable value of $35,000 is security for notes payable of $50,000. The equipment secures the remaining notes payable. Expected realizable valu of the assets are: Accounts receivable $400,000 Inventory 150,000

Buildings, net Equipment, net Goodwill Wages payable Taxes payable Accounts payable Notes payable Common stock Retained earnings-deficit Total 800,000 125,000 100,000 (80,000) (45,000) (980,000) (305,000) (800,000) 440,300 50 Inventory with a book value of $240,000 and realizable value of $35,000 is security for notes payable of $50,000. The equipment secures the remaining notes payable. Expected realizable valu of the assets are: Accounts receivable $400,000 Inventory 150,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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