The Abra Company owes P200,000 on a note payable plus P8,000 in interest to its bank. The note is scoured by inventory with a book value of P160,000 and a fair value of P120,000. What amount wll the bank received if unsecured creditors receive 75% of their claims?
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- The Statement of Affairs for Ivan Corporation shows that approximately P0.78 on the peso probably will be paid to unsecured creditors without priority. The corporation owes JICR Company P23,000 on a promissory note, plus accrued interest on P940. Inventories with a current fair value of P19,200 collateralized the note payable. Compute the amount that JICR Company should receive from Ivan Corporation assuming that the actual payments to unsecured creditors without priority consist of 78% of total claims.APA, Inc. has forced into bankruptcy and has begun to liquidate. Unsecured claims will be paid at the rate of 40 cents on the peso. ABC Co. holds a non-interest bearing note receivable from APA in the amount of P100,000, collateralized by machinery with a liquidation value of P25,000. The total amount to be realized by ABC on this note receivable is:Chico Company entered into a troubled debt restructuring agreement with Social Bank. The bank agreed to accept the land with a carrying amount of P800,000 and a fair value of P1,000,000 in exchange for a note payable with a carrying amount of P1,500,000. What is the gain on extinguishment of debt?
- Filipino Co. has been forced into bankruptcy and liquidated. Unsecured claims will be paid at the rate of P0.50 on the peso. Gold Co. holds a non-interest bearing note receivable from Filipino Co. in the amount of P50,000, collateralize by machinery with a liquidation value ofP10,000. The total amount to be realized by Gold on this note receivable is:The entity sold P1,500,000 of accounts receivable for cash proceeds of P1,390,000. No bad debt allowance was associated with these accounts. On December 15, 2020, the entity assigned the remainder of the accounts receivable, P5,000,000 as of that date, as collateral on a P2,500,000, 12% annual interest rate loan. The entity received P2,500,000 less a 2% finance charge. None of the assigned accounts has been collected by the end of the year. Allowance for bad debts before adjustment, 12/31/2020 100,000 Estimated uncollectible, 12/31/2020 10% of accounts receivable Accounts receivable not including factored and assigned accounts 1,000,000 Accounts receivable – assigned 5,000,000 Accounts receivable – factored 1,500,000…APA, Inc. signed a note payable to its bank for P10,000. Accrued interest on the note on February 28, 2004 amounts to P250. The note is secured by with inventory with a book value of P12,000. The inventory is sold for P8,000 and unsecured creditors receive 30 percent of their claims. The bank should receive the following amount in settlement of the note and interest:
- APA Company Owes the ABC Corporation P60,000 on account, which is secured by accounts receivable with a book value of P50,000. The unsecured portion is considered a claim under the bankruptcy law, the company has filed for bankruptcy. Its statement of affairs lists the accounts receivable securing the ABC account with an estimated realizable value of P45,000. If the dividend to general unsecured creditors is 80%, how much can ABC expect to receive?The entity sold P1,500,000 of accounts receivable for cash proceeds of P1,390,000. No bad debt allowance was associated with these accounts. On December 15, 2020, the entity assigned the remainder of the accounts receivable, P5,000,000 as of that date, as collateral on a P2,500,000, 12% annual interest rate loan. The entity received P2,500,000 less a 2% finance charge. None of the assigned accounts has been collected by the end of the year. Allowance for bad debts before adjustment, 12/31/2020 100,000 Estimated uncollectible, 12/31/2020 10% of accounts receivable Accounts receivable not including factored and assigned accounts 1,000,000 Accounts receivable – assigned 5,000,000 Accounts receivable – factored 1,500,000 28. What is the total amount of cash received from the financing of accounts receivable during the year? a. P3,840,000 b. P1,390,000 c. P3,890,000 d. P3,540,000 29. What total amount of accounts receivable should be reported as…On December 31, 2010 a company was indebted to Creditor Co. on a P2,000,000 10% note. Only interest had been paid to date. Due to its financial difficulties, the company has negotiated a restructuring of its note payable. The parties agreed that the company would settle the debt on the following terms: settle 1/2 of the note by transferring land with a recorded value of P800,000 and a fair value of P900,000 • settle 1/4 of the note by transferring 200,000 shares of P1 par ordinary shares with a fair market value of P15 per share modify the terms of the remaining 1/4 of the note by reducing the interest rate to 5%, extend the due date 3 years from the date of restructuring and reducing the principal to P300,000. How much was the (1) total gain on extinguishment of debt and (2) carrying amount of the note payable as of December 31, 2021? O P437,306 and P273,963 O P550,006 and P142,494 O P336.306 and P262,694 O P437,306 and P262.694
- The following information is related to STANK Corporation which isundergoing liquidation:a. A bank loan amounting to P455,000 is secured by inventories with a book value of P525,000 and a net realizable value of P350,000. b. Of the P1,120,000 accounts payable, P343,000 is secured by accounts receivable amounting to P413,000 which is 10% uncollectible. c. Property and equipment costing P875,000 and which is depreciated by 20% has a net realizable value of P588,000. d. Other unrecorded liabilities are accrued interest payable on a bank loan, P45,500; salaries payable, P112,000; taxes payable, P63,000, and trustee’s fee, P52,500. e. Cash available before liquidation amounts to P87,500. Compute for the estimated deficiency to unsecured creditors.A. 450,800 C. 927,500B. 882,000 D. 980,000The following information are related to JVCD Corporation which is undergoing liquidation: a. A bank loan amounting to P455,000 is secured by inventories with book value of P525,000 and net realizable value of P350,000. b. Of the P1,120,000 accounts payable, P343,000 is secured by accounts receivable amounting to P413,000 which is 10% uncollectible. c. Property and equipment costing P875,000 and which is depreciated by 20% has a net realizable value of P588,000. d. Other unrecorded liabilities are accrued interest payable on bank loan, P45,500; salaries payable, P112,000; taxes payable, P63,000 and trustee’s fee, P52,500. e. Cash available before liquidation amounts to P87,500. Compute for the estimated deficiency to unsecured creditors. A. 450,800 B. 882,000 C. 927,500 D. 980,000On December 31, 2021, LoL Co. was indebted to Garena Street Company on a P2M, 10% note. Only interest had been paid to date. Due to its financial difficulties has negotiated a restructuring of its notes payable. The parties agree that LoL would settle the debt on the following terms: • Settle one half of the note by transferring land with a recorded value of P800,000, and a fair value of P900,000. • Settle one fourth of the note by transferring 200,000 shares of P1 par ordinary shares with a fair value of P1.80 per share. Modify the terms of the remaining one fourth of the note by reducing the interest to 5%, extend the due date three years from the date of restructuring and reducing the principal to P300,000. Total gains on the settlement of debt to be recognized in profit or loss is: A.P437,306B.P577,306C.P337,306D.POE.P340,000