ABC Corp. has been undergoing liquidation since January1. As of March 31, its condensed statement of realization and liquidation is presented below: Assets: Assets to be realized... Assets acquired...... Assets realized.. Assets not realized.. Liabilities: Liabilities to be liquidated... Liabilities not liquidated.. Liabilities liquidated.... Liabilities assumed... Revenues and Expenses: P 1,375,000 750,000 1,200,000 1,375,000 P 1,875,000 1,700,000 2,250,000 1,625,000 Supplementary charges/debits. Supplementary credits..... Compute the net gain (loss) for the three-month period ending March 31 is: .P 3,125,000 2,800,000

ABC Corp. has been undergoing liquidation since January1. As of March 31, its condensed statement of realization and liquidation is presented below: Assets: Assets to be realized... Assets acquired...... Assets realized.. Assets not realized.. Liabilities: Liabilities to be liquidated... Liabilities not liquidated.. Liabilities liquidated.... Liabilities assumed... Revenues and Expenses: P 1,375,000 750,000 1,200,000 1,375,000 P 1,875,000 1,700,000 2,250,000 1,625,000 Supplementary charges/debits. Supplementary credits..... Compute the net gain (loss) for the three-month period ending March 31 is: .P 3,125,000 2,800,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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GG Na Company has been undergoing liquidation since January 1. As of March 31, its condensed statement of realization and liquidation is presented below: Assets:Assets to be realizedP95,000Assets acquired5,000Assets realized30,000Assets not realized42,000 Liabilities:Liabilities liquidated35,000Liabilities not liquidated31,850Liabilities to be liquidated65,000Liabilities assumed1,500Revenues and Expenses:Sales on account 5,000Purchases1,500Payment of expenses of trustee7,500Sales for cash25,000Interest on marketable securities150The net gain (loss) for the three-month period ending March 31 isInsert parenthesis if your answer is loss, example: (10,000)
Below is the statement of realization and liquidation of Alex Corporation, which is under receivership for the month ended July 31, 20x5:AssetsAssets acquired: Assets realized:Accounts receivable P20,000 Investment at fair value P24,000Assets to be realized: Assets not realized:Investment at fair value 32,000 Accounts receivable 10,000Accounts receivable 76,000 Merchandise inventory 30,000Merchandise inventory 40,000LiabilitiesLiabilities liquidated: Liabilities to be liquidated:Accounts payable P56,000 Accounts payable P90,000Liabilities not liquidated: Liabilities assumed:Accounts payable 20,000 Accounts payable 16,000Accrued expenses 4,000Supplementary Items Supplementary Expenses Supplementary IncomePurchases P3,000 Sales on account P12,000Expenses 15,000 Cash sales 40,000Interest income 4,000QUESTIONS:9. What is the net income or loss for the period? ______________
The following data were taken from the statement of realization and liquidation of ABC Corp. for the quarter ended June 30: Assets to be realized ₱515,625Supplementary credits 796,875Liabilities to be liquidated 843,750Supplementary charges 731,250Liabilities liquidated 562,500Assets acquired 562,500Assets realized 656,250Liabilities assumed 281,250Assets not realized 234,375 The ending capital balances of capital stock and retained earnings are ₱468,750 and ₱187,500, respectively. A net loss of ₱262,500 was reported for the period. How much is the ending balance of cash?
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A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data. The assets are shown at net realizable values. Assets pledged with fully secured creditors $ 212,000 Fully secured liabilities 156,000 Assets pledged with partially secured creditors 386,000 Partially secured liabilities 502,000 Assets not pledged 306,000 Unsecured liabilities with priority 208,400 Accounts payable (unsecured) 396,000 The company owes $9,000 on an account payable to an unsecured creditor (without priority). How much money can this creditor expect to collect? The company owes $112,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $86,000. How much money can the bank expect to collect? a. Expected amount by creditor b. Expected amount by bank
The following information were taken from the statement of realization and liquidation of ABC Company for the quarter ended March 31, 2022: Assets to be realized P 650,000 Assets acquired 700,000 Assets realized 850,000 Assets not realized 300,000 Liabilities to liquidated 1,080,000 Liabilities assumed 360,000 Liabilities not liquidated 900,000 Liabilities liquidated 720,000 Supplementary income 1,020,000 Supplementary expenses 934,000 The ending balances of share capital and retained earnings are P600,000 and P120,000, respectively. How much is the ending cash balance?
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The following amounts were taken from the statement of affairs for Aray Company: Unsecured liabilities with priority P 52,500 Stockholders’ equity 189,000 Estimated liquidation expenses that have not been entered in the accounting records 23,625 Unsecured liabilities without priority 472,500 Loss on realization of assets 236,250 What is the amount of total free assets? 425,250 454,125 401,625 408,675
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A statement of financial affairs created for an insolvent corporation that was beginning the liquidation process disclosed the following data (assets were shown at net realizable values): Assets pledged with fully secured creditors $265,000 Fully secured liabilities 200,000 Assets pledged with partially secured creditors 497,000 Partially secured liabilities 641,000 Free assets 400,000 Unsecured liabilities with priority 210,000 Unsecured liabilities 670,000 Required: Prepare a schedule to show the amount available for unsecured creditors after payment of liabilities with priority.
The following data were taken from the statement of realization and liquidation of XYZ Corporation for the quarter ended September 30, 2008: Assets to be realized P 330,000 Assets acquired 360,000 Assets realized 420,000 Assets not realized 150,000 Liabilities to be liquidated 540,000 Liabilities assumed 180,000 Liabilities liquidated 360,000 Liabilities not liquidated 450,000 Supplementary credits 510,000 Supplementary charges 468,000 The ending balances of capital stock and retained earnings are P300,000 and P120,000,respectively. 1. How much is the ending balance of cash?
The following data were ascertained for the month of September in the Statement of realization and liquidation of Enron Corp.: Assets to be realized for October were P18,000. Assets realized during the month were P338,000. Unrecorded assets during the month were P25,000. Assets not sold or collected at the end of August were P380,000. Liabilities assumed were P28,000. Liabilities not liquidated at the end of August were P350,000. Liabilities paid were P268,800. Supplementary charges were 86,350 and supplementary credits were P59,700. Cash balance at the beginning of the month was P10,500. What is the estate equity at the end of September? 116,150(35,150)(60,150)20,850