ADVANCED ACCOUNTING CONNECT ACCESS >I<
1st Edition
ISBN: 9781266418150
Author: Hoyle
Publisher: MCG CUSTOM
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Textbook Question
Chapter 13, Problem 21P
The New England Company has a debt to a bank of $55,000. The company is currently being liquidated and believes that between $12,000 and $20,000 will be paid on that debt. According to the liquidation basis of accounting, what amount is reported for this liability?
- a. $12,000
- b. $16,000
- c. $20,000
- d. $55,000
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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 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. 980,000
Chapter 13 Solutions
ADVANCED ACCOUNTING CONNECT ACCESS >I<
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