Homework Help is Here – Start Your Trial Now!
Business
Accounting
The condensed statement of financial position as of January 1, 2022 of ABC Corporation is undergoing liquidation and has provided the following information: Cash Accounts Receivables Merchandise Inventory Prepaid expenses Building (net) Goodwill Total Assets ABC CORPORATION Statement of Financial Position As of January 1, 2022 ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Accrued Salaries Payable Accounts Payable Mortgage Payable Loan Payable Note Payable Ordinary shares Deficit Total Liabilities and Equity P 57,100 170,400 40,000 1,250 172,500 27,500 P 468,750 P 25,000 54,250 200,000 110,000 40,000 60,000 (20,500) P 468,750 a) The mortgage payable is secured by the building having a realizable value of P180,000. b) Accounts payable amounting to P30,000 is secured by receivables amounting to P42,600 which is collectible in the amount of P34,080. The balance in the book value of the receivables which has a realizable value of P117,500 is used to secure the loan payable. c) The inventory has a realizable value of P25,600. In addition to the recorded liabilities are accrued interest on mortgage payable amounting to P2,000, liquidation expenses amounting to P4,750 and taxes amounting to P2,000. (use two decimal places for the recovery percentage) Compute for the total payment to unsecured creditors without priority

The condensed statement of financial position as of January 1, 2022 of ABC Corporation is undergoing liquidation and has provided the following information: Cash Accounts Receivables Merchandise Inventory Prepaid expenses Building (net) Goodwill Total Assets ABC CORPORATION Statement of Financial Position As of January 1, 2022 ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Accrued Salaries Payable Accounts Payable Mortgage Payable Loan Payable Note Payable Ordinary shares Deficit Total Liabilities and Equity P 57,100 170,400 40,000 1,250 172,500 27,500 P 468,750 P 25,000 54,250 200,000 110,000 40,000 60,000 (20,500) P 468,750 a) The mortgage payable is secured by the building having a realizable value of P180,000. b) Accounts payable amounting to P30,000 is secured by receivables amounting to P42,600 which is collectible in the amount of P34,080. The balance in the book value of the receivables which has a realizable value of P117,500 is used to secure the loan payable. c) The inventory has a realizable value of P25,600. In addition to the recorded liabilities are accrued interest on mortgage payable amounting to P2,000, liquidation expenses amounting to P4,750 and taxes amounting to P2,000. (use two decimal places for the recovery percentage) Compute for the total payment to unsecured creditors without priority

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8RE
See similar textbooks
icon
Related questions
Question

2. 

The condensed statement of financial position as of January 1, 2022 of ABC Corporation is undergoing liquidation and has provided the following information: Cash Accounts Receivables Merchandise Inventory Prepaid expenses Building (net) Goodwill Total Assets ABC CORPORATION Statement of Financial Position As of January 1, 2022 ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Accrued Salaries Payable Accounts Payable Mortgage Payable Loan Payable Note Payable Ordinary shares Deficit Total Liabilities and Equity P 57,100 170,400 40,000 1,250 172,500 27,500 P 468,750 P 25,000 54,250 200,000 110,000 40,000 60,000 (20,500) P 468,750 a) The mortgage payable is secured by the building having a realizable value of P180,000. b) Accounts payable amounting to P30,000 is secured by receivables amounting to P42,600 which is collectible in the amount of P34,080. The balance in the book value of the receivables which has a realizable value of P117,500 is used to secure the loan payable. c) The inventory has a realizable value of P25,600. In addition to the recorded liabilities are accrued interest on mortgage payable amounting to P2,000, liquidation expenses amounting to P4,750 and taxes amounting to P2,000. (use two decimal places for the recovery percentage) Compute for the total payment to unsecured creditors without priority
Transcribed Image Text:The condensed statement of financial position as of January 1, 2022 of ABC Corporation is undergoing liquidation and has provided the following information: Cash Accounts Receivables Merchandise Inventory Prepaid expenses Building (net) Goodwill Total Assets ABC CORPORATION Statement of Financial Position As of January 1, 2022 ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Accrued Salaries Payable Accounts Payable Mortgage Payable Loan Payable Note Payable Ordinary shares Deficit Total Liabilities and Equity P 57,100 170,400 40,000 1,250 172,500 27,500 P 468,750 P 25,000 54,250 200,000 110,000 40,000 60,000 (20,500) P 468,750 a) The mortgage payable is secured by the building having a realizable value of P180,000. b) Accounts payable amounting to P30,000 is secured by receivables amounting to P42,600 which is collectible in the amount of P34,080. The balance in the book value of the receivables which has a realizable value of P117,500 is used to secure the loan payable. c) The inventory has a realizable value of P25,600. In addition to the recorded liabilities are accrued interest on mortgage payable amounting to P2,000, liquidation expenses amounting to P4,750 and taxes amounting to P2,000. (use two decimal places for the recovery percentage) Compute for the total payment to unsecured creditors without priority
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS