A company going through a Chapter 7 bankruptcy has the following account balances:
Cash $30,000
Receivables (30% collectible) 50,000
Inventory (worth $39,000) 90,000
Land (worth $120,000) (secures note payable) 100,000
Buildings (worth $180,000) (secures bonds payable) 200,000
Salaries payable (4 workers owed equal amounts for last 2 weeks) 10,000
Accounts payable 90,000
Note payable (secured by land) 110,000
Bonds payable (secured by building) 300,000
Common stock 100,000
Retained earnings -140,000
How much will be paid to each of the following?
A. Salaries Payable
B. Accounts Payable
C. Notes Payable
D. Bonds Payable
