The following are data related to the affairs of Kilometro Company: Carrying value of its assets 1,478,750 393,750 Estimated gain on realization of land and building Estimated loss on realization of other assets 683,500 Unrecorded obligations requiring immediate settlement 21,750 Total recorded obligations (including fully secured creditors of P600,000) 1,450,000 the estimated deficiency to unsecured creditors is

The following are data related to the affairs of Kilometro Company: Carrying value of its assets 1,478,750 393,750 Estimated gain on realization of land and building Estimated loss on realization of other assets 683,500 Unrecorded obligations requiring immediate settlement 21,750 Total recorded obligations (including fully secured creditors of P600,000) 1,450,000 the estimated deficiency to unsecured creditors is

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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ABC Company is in a capital deficiency position and is considering the possibility of liquidation. An analysis of the assets and liabilities of the entity is provided: Assets at net realizable value (pledged against liabilities of P150,000) 250,000 Assets at net realizable value (pledged against liabilities of P260,000) 100,000 Assets at net realizable value (not pledged against any liabilities) 160,000 Liabilities with priority 85,000 Unsecured creditors 400,000 Round off the estimated recovery percentage to XX.XX%, if needed. How much is the estimated payment to partially secured creditors?
present in good accounting form When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) P 80,000 Land and Building (fair value, P240,000) 200,000 Goodwill (fair value, 0) 40,000 Total Assets P320,000 Accounts Payable P160,000 Mortgage Payable (secured by land & building) 200,000 Ordinary share 100,000 Accumulated profits (140,000) Total Liabilities and Equity P320,000 What percentage of their claims are the unsecured creditors…
When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) P 80,000 Land and Building (fair value, P240,000) 200,000 Goodwill (fair value, 0) 40,000 Total Assets P320,000 Accounts Payable P160,000 Mortgage Payable (secured by land & building) 200,000 Ordinary share 100,000 Accumulated profits (140,000) Total Liabilities and Equity P320,000 What percentage of their claims are…
Integrity Company has the following information: Unsecured creditors P460,000 Preferred creditors 220,000 Secured creditors: ABC Co., fair value of asset pledged P360,000 420,000 DEF Co., fair value of asset pledged P200,000 340,000 GHI Co., fair value of asset pledged P280,000 240,000The company also has a number of other assets that are not pledged in any way.How much should be realized from the free assets(unpledged) so that ABC Co. would receive exactly P378,000? a. P378,000 b. P198,000 c. P642,000 d. P462,000 e. P488,000
ABC Corp. had the following data ascertained before liquidation: Total book valueof the assets were P250,000. The book value of the inventories, P80,000 had anexcess in the amount of P26,000 over its estimated fair value. The equipment’sestimated fair value had an excess in the amount of P2,500 over its book value ofP120,000. Included in the book value of the assets was prepaid expenses of P18,000which was considered worthless. Other assets not mentioned above have anestimated fair value which was P15,000 less than its book value. Total liabilities wereP200,000. The accounts payable in the amount of P70,000 was secured by theinventories while the notes payable in the amount of P95,000 was secured by theequipment. Other liabilities not mentioned includes salaries and taxes in the amountof P12,500. What is the estimated loss on asset?
ABC Corp. had the following data ascertained before liquidation: Total book valueof the assets were P250,000. The book value of the inventories, P80,000 had anexcess in the amount of P26,000 over its estimated fair value. The equipment’sestimated fair value had an excess in the amount of P2,500 over its book value ofP120,000. Included in the book value of the assets was prepaid expenses of P18,000which was considered worthless. Other assets not mentioned above have anestimated fair value which was P15,000 less than its book value. Total liabilities wereP200,000. The accounts payable in the amount of P70,000 was secured by theinventories while the notes payable in the amount of P95,000 was secured by theequipment. Other liabilities not mentioned includes salaries and taxes in the amountof P12,500.What is the amount of net free assets? a. 32,000 b. 93,000 c. 50,000 d. 44,500
Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.
Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.A. P1,325,000b. P1,475,000c. P2,075,000d. P1,450,000
TBB Corp. has the following information regarding three of its assets: Estimated Book Value Cash Flows Fair Value Equipment $ 100,000 $ 106,000 $ 90,000 Building $ 200,000 $ 250,000 $ 195,000 Patent $ 50,000 $ 58,000 $ 36,000 What amount of loss should be recorded by TBB due to asset impairment?
A statement of realization and liquidation has been prepared for the RESTLESS Corporation.  The following information is available:Assets to be realized- P60,000                Liabilities assumed- P50,000Assets acquired- P40,000               Liabilities not liquidated- P40,000Assets realized- P55,000                Liabilities to be Liquidated- P80,000Assets not realized- P15,000               Liabilities liquidated- P60,000Supplementary credits- P110,000               Supplementary Charges- P97,000How much is shareholders’ equity, beg. assuming that the cash balance, ending amounted to P50,000? CHOICES: P92,000 P55,000 P118,000 P12,000
A statement of realization and liquidation has been prepared for the RESTLESS Corporation.  The following information is available:Assets to be realized- P60,000                Liabilities assumed- P50,000Assets acquired- P40,000               Liabilities not liquidated- P40,000Assets realized- P55,000                Liabilities to be Liquidated- P80,000Assets not realized- P15,000               Liabilities liquidated- P60,000Supplementary credits- P110,000               Supplementary Charges- P97,000How much is shareholders’ equity, beg. assuming that the cash balance, ending amounted to P50,000? a. P118,000 b. P12,000 c. P92,000 d. P55,000
A statement of realization and liquidation has been prepared for the RESTLESS Corporation.  The following information is available:Assets to be realized- P60,000                Liabilities assumed- P50,000Assets acquired- P40,000               Liabilities not liquidated- P40,000Assets realized- P55,000                Liabilities to be Liquidated- P80,000Assets not realized- P15,000               Liabilities liquidated- P60,000Supplementary credits- P110,000               Supplementary Charges- P97,000How much is shareholders’ equity, beg. assuming that the cash balance, ending amounted to P50,000?