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Study Resources (Accounting)

Multiple Choice Questions 1.Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the partnership. The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities. What method would the accountant have used for recording the admission.
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69.Lucky Co. had cash of $65,000, inventory worth $117,000, and a building worth $169,000. Unfortunately, the company also had accounts payable of $234,000, a note payable of $104,000 (secured by the inventory), liabilities with priority of $26,000, and a bond payable of $195,000 (secured by the building). Total payment on the.
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75.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows: • The investments are currently worth $13,000. • It is estimated that $32,000 of the accounts receivable are collectible. • The inventory can be sold for $74,000. • The prepaid expenses.
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29.A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman. Each partner was.
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63.Bazley Co. had severe financial difficulties and was considering the possibility of filing a bankruptcy petition. At that time, the company had the following assets (stated at net realizable value) and liabilities. Assets that are available for unsecured creditors after payment of liabilities with priority are calculated to be what amount?.
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76.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows: • The investments are currently worth $13,000. • It is estimated that $32,000 of the accounts receivable are collectible. • The inventory can be sold for $74,000. • The prepaid expenses.
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74.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows: • The investments are currently worth $13,000. • It is estimated that $32,000 of the accounts receivable are collectible. • The inventory can be sold for $74,000. • The prepaid expenses.
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70.A statement of financial affairs created for an insolvent corporation that was beginning the liquidation process disclosed the following data (assets were shown at net realizable values): Required: How much money appears to be available for unsecured creditors after payment of liabilities with priority? .
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78.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows: • The investments are currently worth $13,000. • It is estimated that $32,000 of the accounts receivable are collectible. • The inventory can be sold for $74,000. • The prepaid expenses.
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66.Lucky Co. had cash of $65,000, inventory worth $117,000, and a building worth $169,000. Unfortunately, the company also had accounts payable of $234,000, a note payable of $104,000 (secured by the inventory), liabilities with priority of $26,000, and a bond payable of $195,000 (secured by the building). In a Chapter 7.
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21.Cleary, Wasser, and Nolan formed a partnership on January 1, 2012, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the remainder of.
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31.Which statement is false regarding a plan for reorganization? A. The plan is the heart of every Chapter 7 bankruptcy. B. The provisions of the plan specify the treatment of all creditors and equity holders upon approval by the Court. C. The plan shapes the financial structure of the entity that emerges. D..
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21.Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities: The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000. How much should the mortgage holder expect.
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81.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows: • The investments are currently worth $13,000. • It is estimated that $32,000 of the accounts receivable are collectible. • The inventory can be sold for $74,000. • The prepaid expenses.
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67.Lucky Co. had cash of $65,000, inventory worth $117,000, and a building worth $169,000. Unfortunately, the company also had accounts payable of $234,000, a note payable of $104,000 (secured by the inventory), liabilities with priority of $26,000, and a bond payable of $195,000 (secured by the building). Assets available for unsecured.
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27.A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman. Each partner was.
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68.Lucky Co. had cash of $65,000, inventory worth $117,000, and a building worth $169,000. Unfortunately, the company also had accounts payable of $234,000, a note payable of $104,000 (secured by the inventory), liabilities with priority of $26,000, and a bond payable of $195,000 (secured by the building). Total unsecured liabilities are.
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11.Cleary, Wasser, and Nolan formed a partnership on January 1, 2012, with investments of $100,000, $150,000, and $200,000, respectively. For division of income, they agreed to (1) interest of 10% of the beginning capital balance each year, (2) annual compensation of $10,000 to Wasser, and (3) sharing the remainder of.
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32.Which statement is false regarding the acceptance and confirmation of a reorganization plan? A. The plan must be voted on by the creditors and the stockholders of the company. B. A separate vote is required of each class of stockholders. C. Any class of creditors that is not damaged by a reorganization.
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79.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows: • The investments are currently worth $13,000. • It is estimated that $32,000 of the accounts receivable are collectible. • The inventory can be sold for $74,000. • The prepaid expenses.
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65.Bazley Co. had severe financial difficulties and was considering the possibility of filing a bankruptcy petition. At that time, the company had the following assets (stated at net realizable value) and liabilities. Total payment on partially secured debt is calculated to be what amount? .
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80.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows: • The investments are currently worth $13,000. • It is estimated that $32,000 of the accounts receivable are collectible. • The inventory can be sold for $74,000. • The prepaid expenses.
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62.Bazley Co. had severe financial difficulties and was considering the possibility of filing a bankruptcy petition. At that time, the company had the following assets (stated at net realizable value) and liabilities. In a liquidation, total assets available to pay liabilities with priority and unsecured creditors are calculated to be what.
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77.Hampton Company is trying to decide whether to seek liquidation or reorganization. Hampton has provided the following balance sheet: Additional information is as follows: • The investments are currently worth $13,000. • It is estimated that $32,000 of the accounts receivable are collectible. • The inventory can be sold for $74,000. • The prepaid expenses.
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