Explore BrainMass
Share

Explore BrainMass

    Clare Company and Wild Bill Company

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    3. The liabilities of Clare Company are listed below:
    Accounts Payable $20,000
    First Mortgage bonds payable $100,000
    Debentures payable $80,000

    Clare Company liquidated its assets, receiving $150,000 cash. The debenture holders will receive ________ if the debentures are unsubordinated.
    a)$10,000
    b)$30,000
    c)$40,000
    d)$50,000

    4. Wild Bill Company recently issued 10,000 shares of $1 per value common stock for $35,500. This transaction will affect Wild Bill Company by:
    a)increasing the Common Stock account by $35,500
    b)increasing the Capital in Excess of Par account by $35,500
    c)increasing the Common Stock account by $10,000
    d)increasing the Retained Earnings account by $25,500

    © BrainMass Inc. brainmass.com October 9, 2019, 10:02 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/clare-company-and-wild-bill-company-205763

    Solution Preview

    3. The liabilities of Clare Company are listed below:
    Accounts Payable $20,000
    First Mortgage bonds payable $100,000
    Debentures payable $80,000

    Clare Company liquidated its assets, receiving $150,000 cash. The debenture holders will receive ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer how much will the debenture holders receive if the debentures are unsubordinated and how much will transaction of common stock issuance will affect Wild Bill Company.

    $2.19