The following items were displayed in the statement of affairs of a Corporation: Unsecured liabilities without priority - P100,000 Stockholder's equity - 40,000 Loss on realization of assets - 30,000
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The following items were displayed in the statement of affairs of a Corporation:
Unsecured liabilities without priority - P100,000
Loss on realization of assets - 30,000
Estimated taxes and administrative costs that have not been entered in the records - 10,000
Unsecured creditors with priority -15,000
Based on the foregoing information, how much should the unsecured creditors without priority expect to receive on the liquidation?
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- During the liquidation, the sale of all the assets of liquidated corporation resulted to net proceeds of P500,000. Liquidation expense amounting to P30,000 has been paid at the start of liquidation from the net proceeds of disposal of all assets. Before the liquidation, the following data are provided concerning the financial position of the said financially distressed corporation:• The corporation has total assets with book value of P1,000,000 and deficiency amounting to(P170,000.)• An investment property with book value of P250,000 and realizable value of P150,000 secured a loanpayable amounting to P50,000.• Inventory with book value of P500,000 and realizable value of P50,000 secured a note payableamounting to P100.000• Salaries payable and come tax payable amounted to P50,000 and 20,000. respectively. What is the amount received by partially secured creditor?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 P12,000A 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?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?
- 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): Assets pledged with fully secured creditors $220,000 Fully secured liabilities 160,000 Assets pledged with partially secured creditors 390,000 Partially secured liabilities 510,000 Assets not pledged 310,000 Unsecured liabilities with priority 182,800 Accounts payable (unsecured) 400,000 This company owes $13,000 to an unsecured creditor (without priority). How much money can this creditor expect to collect? 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?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):Assets pledged with fully secured creditors . . . . . . . . . . . . . . . . $220,000Fully secured liabilities .. . . . 160,000Assets pledged with partially secured creditors . . . . . . . . . . . . . . . 390,000Partially secured liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510,000Assets not pledged . . . . . . 310,000Unsecured liabilities with priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,800Accounts payable (unsecured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000a. 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…A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data. The assets are shown at net realizable values. Assets pledged with fully secured creditors $ 212,000 Fully secured liabilities 156,000 Assets pledged with partially secured creditors 386,000 Partially secured liabilities 502,000 Assets not pledged 306,000 Unsecured liabilities with priority 208,400 Accounts payable (unsecured) 396,000 The company owes $9,000 on an account payable to an unsecured creditor (without priority). How much money can this creditor expect to collect? The company owes $112,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $86,000. How much money can the bank expect to collect? a. Expected amount by creditor b. Expected amount by bank
- 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?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?Which of the following is necessary for a company to use fresh start accounting?a. The previous owners must hold at least 50 percent of the stock of the company when it emerges from bankruptcy.b. The reorganization value of the company must exceed the value of all assets.c. The reorganization value of the company must exceed the value of all liabilities.d. The original owners must hold less than 50 percent of the stock of the company when it emerges from bankruptcy.
