. Unsecured Liabilities with priority 2. Unsecured Liabilities without priority 3. Estimated Recovery Percentage 4. Net gain (loss) on realization
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Kindly show the complete solution. Thank you.
Required:
1. Unsecured Liabilities with priority
2. Unsecured Liabilities without priority
3. Estimated Recovery Percentage
4. Net gain (loss) on realization
5. Estimated Deficiency
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- Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay its debts.The statement of financial position on that date shows:ASSETS LIABILITIES & EQUITYCash P5,400 Accounts Payable P105,000Accounts Receivable 78,700 Notes Payable – PNB 30,000Note Receivable 37,000 Notes Payable – suppliers 102,500Inventory 175,700 Accrued wages 3,700Prepaid Expenses 1,900 Accrued taxes 9,300Land and Building 122,500 Mortgage Bonds Payable 180,000Equipment, net 97,600 Common stock – P100 par 150,000Retained Earnings (61,700)Total Assets P518,800 Total Liabilities & Equity P518,800Additional information:a. Accounts receivable of P32,220 and notes receivable of P25,000 are expected to be collectible. The goodnotes are pledged to Philippine National Bank.b. Inventories are expected to bring in P90,200 when sold under bankruptcy conditions.c. Land and buildings have an appraised value of P190,000. They serve as security on the bonds.d. The current value of the…Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay its debts. The statement of financial position on that date shows: ASSETS LIABILITIES & EQUITY P5,400 78,700 37,000 175,700 1,900 122,500 Accounts Payable Notes Payable – PNB Notes Payable – suppliers Accrued wages Accrued taxes Mortgage Bonds Payable Common stock – P100 par Retained Earnings Total Liabilities & Equity P105,000 30,000 102,500 3,700 9,300 180,000 150,000 (61,700) P518,800 Cash Accounts Receivable Note Receivable Inventory Prepaid Expenses Land and Building Equipment, net 97,600 Total Assets P518,800 Additional information: a. Accounts receivable of P32,220 and notes receivable of P25,000 are expected to be collectible. The good notes are pledged to Philippine National Bank. b. Inventories are expected to bring in P90,200 when sold under bankruptcy conditions. c. Land and buildings have an appraised value of P190,000. They serve as security on the bonds. d. The current value…Statement of Affalrs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholden have requested an estimate of the results of a liquidation of the cómpany. Miner's trial balgne follows: Debit P 6,000 63,000 Accounts Credit Cash.. Accounts receivable. Allowance for bad debts. Notes Receivable Accrued Interest on Notes Receivable, Inventory. Buildings.. ACcumulated Depreciation-Buildings. Equipment... ACcumulated Depreciation-Equipment. Prepaid insurance.. Goodwill Accrued Wages-with Priority. Taxes Payable-with Priority. Accounts Payable. P 2,000 Y 50,000 9011200 60,000 182,000 63.000 14,600 1,400 1,100 8,500 6,000 2,400
- The following data were taken from the Statement of Affairs of Honesty Company: Shareholders' equity Bonds Payable without security Salaries Payable Loss on realization of assets Accounts payable without security Taxes Estimated Liquidation expenses Determine the estimated amount payable to the holder of the bonds. P441,000 735,000 50,000 551,250 367,500 72,500 55,125The trial balance of Kroeger Incorporated included the following accounts as of December 31, 2024: Sales revenue Interest revenue Gain on sale of investments Gain on debt securities Cost of goods sold Loss on projected benefit obligation Selling expense Goodwill impairment loss Interest expense General and administrative expense Debits Credits $ 8,350,000 55,000 115,000 137,500 $ 155,000 6,155,000 750,000 525,000 25,000 450,000 The gain on debt securities represents the increase in the fair value of debt securities and is classified a component of other comprehensive income. Kroeger had 300,000 shares of stock outstanding throughout the year. Income tax expense has not yet been recorded. The effective tax rate is 25%. Required: Prepare a 2024 separate statement of comprehensive income for Kroeger Incorporated. Note: Amounts to be deducted should be indicated with a minus sign. KROEGER INCORPORATED Statement of Comprehensive Income For the Year Ended December 31, 2024 Net income Other…53. CPA Company used the allowance method of accounting for uncollectible accounts. During 2021, the entity had charged 750,000 to bad debt expense and wrote off accounts receivable of 780,000 as uncollectible. What was the decrease in working capital?
- The following information is from the records of H2O Events for Year 1: Credit sales during the year $2,400,000 Accounts receivable (December 31, Year 1) 410,000 Allowance for doubtful accounts (December 31, Year 55,000 1) Bad debt expense for the year 70,000 Refer to H2O Events. What are the effects on the accounting equation when the company writes off a bad debt under the allowance method? O Assets increase and shareholders' equity decreases. O Assets decrease and shareholders' equity increases. O Assets and shareholders' equity decrease. O There is no effect on overall assets or shareholders' equity.Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $40 million, 10% unsecured note. The note was signed January 1, 2014, and was due December 31, 2027. Annual interest was last paid on December 31, 2022. At January 1, 2024. Rothschild Chair Company was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement Note: Use appropriate factor(s) from the tables provided. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: Prepare all journal entries by First Lincoln Bank to record the restructuring and any remaining transactions, for current and future years, relating to the debt under each of the independent circumstances below: 1. First Lincoln Bank agreed to settle the debt in exchange for land having a fair value of $36 million but carried on Rothschild Chair Company's books at $33 million. 2. First Lincoln Bank agreed to (a) forgive the interest accrued from last year, (b)…The financial statements of Calico Corporation, for the May 31 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $278 million, accounts written off during the year of $116 million, balance in allowance at the end of the year $271 million. What did Calico Corporation report as bad debt expense for the year? Select one: a. $155 million b. $109 million c. None of the above d. $162 million e. $123 million
- The annual report for Fabeck Finishing Corporation contained the following information: (in millions) Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable, Net 2021 $673 32 $641 Assume that accounts receivable write-offs amounted to $13 during 2021 and $3 during 2020, and that Fabeck Finishing did not record any recoveries. Bad Debt Expense 2020 $735 31 $704 Required: Determine the Bad Debt Expense for 2021 based on the above facts. (Enter your answer in millions.) millionThe Sunshine Company has the following data in connection with its bankruptcy petition with the Securities and Exchange Commission at the end of 2018. Unsecured creditorsP287.500. Liabilities with priority137,500 Secured Liabilities Debt 1, P262,500; value of pledged asset 225,000 Debt 2, P212,500, value of pledged asset 125,000 Debt 3, P150,000, value of pledged asset 175,000' The company also has a number of other assets that are not pledge in any way, The creditors holding Debt 2 want to receive at least P177,50 Required: For how much do these free assets have to be sold so that Debt 2 would receive exactly P177,500. Show your solutionDAD Company used the allowance method of accounting for uncollectible accounts. During2021, the entity had charged 750,000 to bad debt expense and wrote off accounts receivableof 780,000 as uncollectible. What was the decrease in working capital?*