How much is the net gain (loss) for the period? The following information was taken from the statement of realization and liquidation of Jury and John Bombastix Co.which is undergoing liquidation:ASSETS:8,000,00060,0004,720,000880,000Assets to be realizedAssets acquiredAssets realizedAssets not realizedLIABILITIES:Liabilities liquidatedLiabilities not liquidatedLiabilities to be liquidated8,520,0004,760,00011,480,000Liabilities assumed128,000SUPPLEMENTARY ITEMS:Supplementary expensesSupplementary income100,00072,000How much is the net gain (loss) for the period?

Introduction: Assets: Any things or property owned by business called Assets. Example of Assets :…

The following information was taken from the statement of realization and liquidation of Jury and John Bombastix Co. which is undergoing liquidation: ASSETS: Assets to be realized Assets acquired Assets realized Assets not realized 8,000,000 60,000 4,720,000 880,000 LIABILITIES: Liabilities liquidated Liabilities not liquidated Liabilities to be liquidated Liabilities assumed 8,520,000 4,760,000 11,480,000 128,000 SUPPLEMENTARY ITEMS: Supplementary expenses Supplementary income 100,000 72,000 How much is the net gain (loss) for the period?

The following information was taken from the statement of realization and liquidation of Jury and John Bombastix Co. which is undergoing liquidation: ASSETS: Assets to be realized Assets acquired Assets realized Assets not realized 8,000,000 60,000 4,720,000 880,000 LIABILITIES: Liabilities liquidated Liabilities not liquidated Liabilities to be liquidated Liabilities assumed 8,520,000 4,760,000 11,480,000 128,000 SUPPLEMENTARY ITEMS: Supplementary expenses Supplementary income 100,000 72,000 How much is the net gain (loss) for the period?

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

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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?
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 the net increase (decrease) in retained earnings?
INSOLVENT Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. What is the estimated loss on asset realization? A.59,000 B.38,500 C.41,000 D.56,500
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- P50,000 Assets acquired- P40,000 Liabilities not liquidated- P40,000 Assets realized- P55,000 Liabilities to be Liquidated- P80,000 Assets not realized- P15,000 Liabilities liquidated- P60,000 Supplementary credits- P110,000 Supplementary Charges- P97,000 How much is the net increase (decrease) in retained earnings?
Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarryingAmountNet RealizableValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarryingAmountSettlementAmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. What is the amount paid to unsecured creditors without priority? 2. What is the amount paid to partially secured creditors?
Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarryingAmountNet RealizableValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarryingAmountSettlementAmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. How much are the total free assets? _____________2. How much are the unsecured liabilities with priority? _____________3. How much are the…
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
DUFFLE Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. what is the estimated recovery percentage for the notes payable? 100% 95.90% 96.14% 96.43%
DUFFLE Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. What is the amount of net free assets? Group of answer choices 50,000 93,000 44,500 32,000