Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A compulsory winding up in insolvency order was issued by the court in respect of Rock Bottom Ltd. The company had a capital of 65 000 fully paid ordinary shares of $1 each. The liquidator took possession of the company's assets which raised $873 145 on sale. Included in the sale proceeds was $221 000 from the disposal of the land and buildings.
The creditors submitted their claims and the following debts were admitted as proven:
Liquidation expenses $3 900Liquidator's remuneration 10 400Mortgage loan secured on land and buildings 130 000Additional mortgage loan on land and buildings 104 000Employees' wages 5 employees for 2 weeks at $520 per week 5 200Secretary's salary - 3 weeks at $314 per week 942Employees' holiday pay 6 500Sales commission 650Managing director's salary - 4 weeks at $780 per week 3 120Directors' fees 3 900Trade creditors 104 000Unsecured loan stock 130 000Debentures (secured by circulating security interest) 390 000PAYG tax instalment 1 014Fringe benefits tax 2 600GST 2 586
Required
Question 1: Show the order of priority of payment of debts for Rock Bottom Ltd and calculate the amount payable to the company's ordinary unsecured creditors.
Assume that the exchange of assets has commercial substance. Make the necessary journal entries to record the exchange for both parties
Why do companies make investments in other companies? What are the differences between debt and equity investments? What would influence a company to choose equity or debt as an investment?
Suppose Cape Cod Railway's total revenues are $4, 900,000, its variable costs are $2, 900,000, and its fixed costs are $1, 300,000.
On January 6, Aaron Co. sells merchandise on account to Foley Inc. Prepare the entries on Aaron Co.'s books to record the sale and related collection.
A computer used in business. It was purchased on Jan 1, 2013 for $10000. What is the depreciation that may be taken for tax purposes
What are the tax consequences for Kristin in each alternative? Kristin is in the 24% tax bracket
Explain how estimation of service lives can result in unrealistically high valuations of fixed assets.
At the beginning of 2007, Emily Corporation issued 10,000 shares of $100 par, 5%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred shareholders. What amount of dividends will a shareholder owning 100 shares ..
How would revenue recognition under this contract be accounted for under current IFRS 15 and ASC 606 standards (See Section 1.2)
For 2010, Skresso Co. reported $3.64 of earnings per share of common stock. During 20011 the firm had a 4% common stock dividend.
red sauce canning company processes tomatoes into catsup tomato juice and canned tomatoes.nbsp during the summer of
For each situation, fully discuss the correct accounting treatment, including any required disclosures. Provide an explanation for your answers
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd