The following data are provided by the APA Company: P150,000 105,000 Assets at book value. Assets at net realizable value.. Liabilities at book value: Fully secured mortgage.. Unsecured accounts and notes payable. 60,000 70,000 Unrecorded liabilities: Interest 500 Estimated cost of administering estate.. The court has appointed a trustee to liquidate the company. 6,000
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The statement of affairs prepared by the trustee at this time should include an estimated deficiency to unsecured creditors of:
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- The following data are provided by the Twitter Company:Assets at book value P150,000Assets at net realizable value P105,000Liabilities at book value:Fully secured mortgage P60,000Unsecured accounts and notes Payable P70,000Unrecorded Liabilities:Interest on Bank Notes P500Estimated cost of administering estate P6,000The court has appointed a trustee to liquidate the company.The journal entry made by the trustee to record the assets and liabilities should include an state deficit of:a. P31,500 c. P25,500b. P31,000 d. P25,000Alpha Corporation, about to be liquidated, has the following amounts for its assets and liabilities: Book Value Net Realizable Value Current assets $ 225,000 $ 180,000 Land 80,000 100,000 Building 560,000 450,000 Equipment 250,000 120,000 Accounts payable 200,000 Income taxes payable 80,000 Mortgage payable 600,000 Note payable 75,000 The mortgage is secured by the land and building, and the note payable is secured by the equipment. Alpha expects that the expenses of administering the liquidation will total $45,000. Required: How much should Alpha expect to pay on the accounts payable?The 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. 980,000
- 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. 980,000How much is the total free assets? The following data were taken from the statement of affairs of TW CORP: Shareholder's equity- P441,000 Salaries-50,000 Bonds payable (unsecured)-735,000 Loss on asset realization-551,250 Accounts payable-P367,500 Taxes-72,500 Trustees expenses-55,125 A.953,575 B.1,114,750 C.1,059,625 D.992,250Veltri Incorporated has the following assets and liabilities (assets are stated at net realizable value): Assets pledged with secured creditors $ 80,000 Assets pledged with partially secured creditors 70,000 Other assets 180,000 Secured liabilities 40,000 Partially secured liabilities 95,000 Liabilities with priority 55,000 Unsecured liabilities 225,000 In a liquidation, how much money would be paid on the partially secured liabilities?
- Veltri Incorporated has the following assets and liabilities (assets are stated at net realizable value): Assets pledged with secured creditors $ 80,000 Assets pledged with partially secured creditors 70,000 Other assets 180,000 Secured liabilities 40,000 Partially secured liabilities 95,000 Liabilities with priority 55,000 Unsecured liabilities 225,000 In a liquidation, what is the amount of free assets after payment of liabilities with priority?A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values):a. This company owes $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect? b. This company owes $120,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $90,000. How much money can this bank expect to collect?The Walston Company is to be liquidated and has the following liabilities: Income taxes . . . . . . . . . . . $ 8,000Notes payable (secured by land) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000 Accounts payable . . . . . . . . 85,000 Salaries payable (evenly divided between two employees) . . . . . . . 6,000Bonds payable . . . . . . . . . . . . 70,000 Administrative expenses for liquidation . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 The company has the following assets: Book Value Fair Value Current Assets $80000 $35000 Land 100000 90000 Buildings and Equipment 100000 110000 How much money will the holders of the notes payable collect following liquidation?
- POP Inc is to be liquidated and has the following liabilities: income taxes payable 42,805 wages payable 157,320 accounts payable (including customers credit balances of 50,000) 1,380,000 bonds payable(including interests of 50,000) 1,250,000 notes payable( excluding interests of 20,000) 670,000 The company's asset is composed of the following at their book values: cash 100,000 accounts receivable(including customer's credit balances mentioned above) 500,000 inventory (used as security for the notes) 330,000 land and building (used as security for the bonds) 1,500,000 comparing to their net realizable values, the followinghas been determined: - 20% of the accounts receivable is worthless - 1/3 of the inventory owned by the company is worthless - land and building is undervalued by 500,000 How much will be recovered by creditors from the account payable? Round off answers to two decimal placesThe following selected account balances were taken from the balance sheet of Q Corp. as of December 31, 2021, immediately before the take over of the trustee: Marketable securities P300,000; Inventories P110,000; Land P150,000; Building P400,000. Marketable securities have present market value of P320,000. These securities have been pledged to secure notes payable of P280,000. The estimated worth of inventories of P70,000. However, inventories with book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged estimated to be P40,000. The land and building are estimated to have a total realizable value of P450,000. This property was pledged to secure the mortgage payable of P250,000. What is the amount available for preferred claims and unsecured creditors out of assets pledged with fully secured creditors?The following selected account balances were taken from the balance sheet of Q Corp. as of December 31, 2021, immediately before the take over of the trustee; Marketable securities P300,000; Inventories P110,000; Land P150,000; Building P400,000; Marketable securities have present market value of P320,000. These securities have been pledged to secure notes payable of P280,000. The estimated worth of inventories of P70,000. However, inventories with book value of P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the inventories pledged estimated to be P40,000. The land and building are estimated to have a total realizable value of P450,000. This property was pledged to secure the mortgage payable of P250,000. What is the amount available for preferred claims and unsecured creditors out of assets pledged with fully secured creditors? Please provide a solution. Thank you!