View Full Version : When dealing with claims on company assets
Elix
Oct 4, 2015, 08:06 AM
owners take precedence over creditors.
All of the choices are possible: it depends on the situation
owners and creditors are treated equally
creditors take precedence over owners
Elix
Oct 4, 2015, 08:12 AM
The company pays $4,000 in cash and $6,000 in notes payable to buy $10,000 equipment
The company buys $10,000 of equipment for $4,000 in cash and 6,000 on credit
The company sells $10,000 of equipment for $4,000 in cash and $6,000 on credit
The company sells $10,000 of equipment for $4,000 in cash and pays off $6,000 it owes on the equipment
dr
Cash-
4,000
dr
Notes Receivable
6,000
cr
Equipment
10,000
Curlyben
Oct 4, 2015, 08:26 AM
What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..
Elix
Oct 4, 2015, 01:16 PM
I think the answer is the company sells $10,000 of equipment for $4,000 in cash and $6,000 on credit.
paraclete
Oct 4, 2015, 01:59 PM
Yes that is one possible answer what was your answer for the first part of the question?
Elix
Oct 4, 2015, 02:18 PM
Yes that is one possible answer what was your answer for the first part of the question?
Creditors take precedence over owners.
paraclete
Oct 5, 2015, 02:03 AM
Well done