The trust for APA, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60,000 may expect to receive approximately P36,000 if assets are sold for the benefit of creditors. • A is an employee who is owed P750 • B holds a note for P1,000 on which interest of P50 is accrued; nothing has been pledged on the note. • C holds a note of P6,000 on which interest of P300 is accrued; securities with a book value P6,500 and a present market value of P5,000 are pledged on the note. D holds a note for P2,500 on which interest of P150 is accrued property with a book value of P2,000 and a present market value of P3,000 is pledged on the note.

The trust for APA, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60,000 may expect to receive approximately P36,000 if assets are sold for the benefit of creditors. • A is an employee who is owed P750 • B holds a note for P1,000 on which interest of P50 is accrued; nothing has been pledged on the note. • C holds a note of P6,000 on which interest of P300 is accrued; securities with a book value P6,500 and a present market value of P5,000 are pledged on the note. D holds a note for P2,500 on which interest of P150 is accrued property with a book value of P2,000 and a present market value of P3,000 is pledged on the note.

Name: How much may each of the following creditors hope to receive? The trus
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: How much may each of the following creditors hope to receive? The trust for APA, Inc. prepares a statement of affairs which shows that unsecured creditorswhose claims total P60,000 may expect to receive approximately P36,000 if assets are sold forthe

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 24CE

See similar textbooks

Similar questions

Southwestern Wear Inc. has the following balance sheet: The trustees costs total 281,250, and the firm has no accrued taxes or wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of 2.5 million is received from sale of the assets?
#21 The trustee for John Corp. prepares a statement of affairs which shows that unsecured creditors whose claims total P540,000 may expect to receive approximately P405,000 if assets are sold for the benefit of creditors. Danielle Corp. holds a note for P22,500 on which interest of P1,350 is accrued, property with a book value of P18,000 and a realizable amount of P27,000 is pledged on the note Randolph, an employee is owed P6,750 for his salary Baltimore Corp. holds a note of P54,000 on which interest of P2,700 is accrued, securities with a book value of P58,500 and a realizable amount P45,000 is pledged on the note Nick Corp. holds a note for P9,000 on which interest of P500 is accrued, nothing has been pledged for the note How much may each of the following creditors receive? Group of answer choices P23,850; P6,750; P53,775; P7,125 P27,000; P6,750; P53,775; P0 P23,850; P6,750; P56,700; P7,125 P27,000; P6,750; P56,700; P0
An entity had the following liabilities on December 31, 2020: Accounts Payable 55,000 Unsecured notes, 8% due 7/1/2021 400,000 Accrued expenses 35,000 Contingent liability 450,000 Deferred tax liability 25,000 Senior bonds, 7%, due 3/31/2021 1,000,000 The contingent liability is an accrual for possible loss on a P1,000,000 lawsuit filed against the entity. The legal counsel expects the suit to be settled in 2021 and has estimated that the entity will be liable for damages in the range of P450,000 to P750,000. The deferred tax liability is expected to reverse in 2021. What amount should be reported on December 31, 2020 for current liabilities? None of theseNone of these 940,000940,000 1,490,0001,490,000 1,515,0001,515,000…
Please answer it in a good accounting form. Thank you! The following selected account balances were taken from the balance sheet of Quitting Corp. as of December 31, 2020, immediately before the take over of the trustee:Marketable securities P300,000Inventories 110,000Land 150,000Building 400,000Additional information:• 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 is 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 is estimated to be P40,000.• Land and building are estimated to have a total realizable value of P450,000. This property is pledged to secure the mortgage payable of P250,000.What is the estimated amount available for preferred claims and unsecured creditors out of the EXCESS assets pledged with fully…
The following selected account balances were taken from the balance sheet of Quitting Corp. as of December 31, 2020, immediately before the take over of the trustee: Marketable securities P300,000 Inventories 110,000 Land 150,000 Building 400,000 Additional information: • 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 is 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 is estimated to be P40,000. • Land and building are estimated to have a total realizable value of P450,000. This property is pledged to secure the mortgage payable of P250,000. What is the estimated amount available for preferred claims and unsecured creditors out of the assets pledged with fully secured creditors?a. P240,000b. P840,000c. P770,000