1-Statement of Affairs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholders have requested an estimate of the results of a liquidation of the company. Miner's trial balance follows: Credit Accounts 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 INDONES...00 Debit P 6,000 63,000 X 1 Y 50,000 92-1,200 Accrued Wages-with Priority. Taxes Payable-with Priority.. Accounts Payable. Notes Payable. Accrued Interest Payable. Common Stock Retained Earnings (deficit), Totals. The assets are expected to bring cash on conversion in the following amounts: Accounts Receivable. Notes receivable including P1,000 accrued interest.. Inventory. Building Equipment. Prepaid insurance. 60,000 T 182,000 14.600 1,100 8,500 DE 2015. P 2,000 63.000 1,400 16,000 2.400 170,000 80,000 1,600 110.000 50.000 P 436.400 P 436.400 P 50,000 40,800 30,000 75.000 4,200 400 The notes receivable are pledged as security on a note payable of P40.000. A note payable d P20,000 is secured by a lien on the building, and the equipment is pledged as security on a note payable of P10,000. One-half of the interest payable relates to the P40.000 note payable; the other half of the interest payable relates to the P20,000 note payable. There is no accrued interest on the other notes payable. Required: 1. Prepare a statement of affairs as of May 31, 20x4. Include a deficiency account, and 2. Determine the estimated dividend rate to the general unsecured creditors
1-Statement of Affairs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholders have requested an estimate of the results of a liquidation of the company. Miner's trial balance follows: Credit Accounts 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 INDONES...00 Debit P 6,000 63,000 X 1 Y 50,000 92-1,200 Accrued Wages-with Priority. Taxes Payable-with Priority.. Accounts Payable. Notes Payable. Accrued Interest Payable. Common Stock Retained Earnings (deficit), Totals. The assets are expected to bring cash on conversion in the following amounts: Accounts Receivable. Notes receivable including P1,000 accrued interest.. Inventory. Building Equipment. Prepaid insurance. 60,000 T 182,000 14.600 1,100 8,500 DE 2015. P 2,000 63.000 1,400 16,000 2.400 170,000 80,000 1,600 110.000 50.000 P 436.400 P 436.400 P 50,000 40,800 30,000 75.000 4,200 400 The notes receivable are pledged as security on a note payable of P40.000. A note payable d P20,000 is secured by a lien on the building, and the equipment is pledged as security on a note payable of P10,000. One-half of the interest payable relates to the P40.000 note payable; the other half of the interest payable relates to the P20,000 note payable. There is no accrued interest on the other notes payable. Required: 1. Prepare a statement of affairs as of May 31, 20x4. Include a deficiency account, and 2. Determine the estimated dividend rate to the general unsecured creditors
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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![voilat zo boteam PROBLEMS anzeitlidio bro besten foratsiona
1-Statement of Affairs and Deficiency Account
Miner Company is being forced into bankruptcy. The company's creditors and stockholders
have requested an estimate of the results of a liquidation of the company. Miner's trial balance
follows:
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.
Notes Payable..
Accrued Interest Payable.
Common Stock
Retained Earnings (deficit).
Totals...
KASUS
64
Accounts Receivable...
Notes receivable including P1,000 accrued interest.
Inventory....
Building
Equipment....
Prepaid insurance..
Debit
P 6,000
63,000
Y-50,000 Pikar
90 1,200
60,000
182,000
14.600
1,100
8,500
P 2,000
10. GENEREN] 73
63,000
1,400
50.000
P 436.400 P 436.400
eldecatron to inay
The assets are expected to bring cash on conversion in the following amounts: Teck
116.000
2.400
170,000
80,000
1.600
110.000
P 50,000
40,800
30,000
75,000
4,200
400
The notes receivable are pledged as security on a note payable of P40,000. A note payable of
P20,000 is secured by a lien on the building, and the equipment is pledged as security on a note
payable of P10,000. One-half of the interest payable relates to the P40,000 note payable: the
other half of the interest payable relates to the P20.000 note payable. There is no accrued
interest on the other notes payable.
Required:
1. Prepare a statement of affairs as of May 31, 20x4. Include a deficiency account, and
2. Determine the estimated dividend rate to the general unsecured creditors.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd99593f3-db82-42cf-aed6-1e0dfde299bd%2Ff048a328-7b22-4971-9885-f2653eaf0f5e%2Fhmr1fd_processed.png&w=3840&q=75)
Transcribed Image Text:voilat zo boteam PROBLEMS anzeitlidio bro besten foratsiona
1-Statement of Affairs and Deficiency Account
Miner Company is being forced into bankruptcy. The company's creditors and stockholders
have requested an estimate of the results of a liquidation of the company. Miner's trial balance
follows:
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.
Notes Payable..
Accrued Interest Payable.
Common Stock
Retained Earnings (deficit).
Totals...
KASUS
64
Accounts Receivable...
Notes receivable including P1,000 accrued interest.
Inventory....
Building
Equipment....
Prepaid insurance..
Debit
P 6,000
63,000
Y-50,000 Pikar
90 1,200
60,000
182,000
14.600
1,100
8,500
P 2,000
10. GENEREN] 73
63,000
1,400
50.000
P 436.400 P 436.400
eldecatron to inay
The assets are expected to bring cash on conversion in the following amounts: Teck
116.000
2.400
170,000
80,000
1.600
110.000
P 50,000
40,800
30,000
75,000
4,200
400
The notes receivable are pledged as security on a note payable of P40,000. A note payable of
P20,000 is secured by a lien on the building, and the equipment is pledged as security on a note
payable of P10,000. One-half of the interest payable relates to the P40,000 note payable: the
other half of the interest payable relates to the P20.000 note payable. There is no accrued
interest on the other notes payable.
Required:
1. Prepare a statement of affairs as of May 31, 20x4. Include a deficiency account, and
2. Determine the estimated dividend rate to the general unsecured creditors.
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