Nissan Corporation is undergoing liquidation. On January 1, 2020 its Statement of Financial Position showed the following accounts: ASSETS Cash P 150,000 Accounts Receivables-net 290,600 Inventory 50,000 Prepaid Expenses 10,400 Building 380,000 Goodwill 80,000 TOTAL P 961.000 LIABILITIES AND EQUITY Salaries Payable P 85,000 Accounts Payable 120,700 Mortgages Payable 428,000 Loan Payable 130,000 Notes Payable 84,300 Ordinary Shares 170,000 Deficit (57,000) TOTAL P961.000 The mortgage payable is secured by the Building having a realizable value of P400,000. Accounts Payable amounting to P75,000 is secured by receivables amounting to P90,600 (P9,900 of which is uncollectible). The balance of receivables which has a realizable value of P187,500 is used to secure the loan payable. Inventory has a realizable value of P41,200. In addition to recorded liabilities are: accrued interest on mortgage payable amounting to P4,280, liquidation expenses amounting P11,300 and taxes amounting to P5.600. Prepaid expenses and goodwill have no realizable values. What is the estimated payment to partially secured creditors?
Nissan Corporation is undergoing liquidation. On January 1, 2020 its
ASSETS
Cash
P 150,000
290,600
Inventory
50,000
Prepaid Expenses
10,400
Building
380,000
80,000
TOTAL
P 961.000
LIABILITIES AND EQUITY
Salaries Payable
P 85,000
Accounts Payable
120,700
Mortgages Payable
428,000
Loan Payable
130,000
Notes Payable
84,300
Ordinary Shares
170,000
Deficit
(57,000)
TOTAL
P961.000
The mortgage payable is secured by the Building having a realizable value of P400,000. Accounts Payable amounting to P75,000 is secured by receivables amounting to P90,600 (P9,900 of which is uncollectible). The balance of receivables which has a realizable value of P187,500 is used to secure the loan payable. Inventory has a realizable value of P41,200. In addition to recorded liabilities are: accrued interest on mortgage payable amounting to P4,280, liquidation expenses amounting P11,300 and taxes amounting to P5.600. Prepaid expenses and goodwill have no realizable values.
What is the estimated payment to partially secured creditors?
Step by step
Solved in 2 steps with 1 images