2. from to recover Use the financial position of Big Co. in the preceding problem but ignore the additional information. Instead, use the additional information provided below. 2000 6000 4.0000 1.000 cit) (1.342 7,4000 0 interest to sell ties for the e price aid for the 00,000, incure 00. to the ured Big Co.'s 4 e . s liquidation is entrusted to Small, a receiver. on January 1, 20x1: Information Interest of P20,000 is expected to be collected on the note and interest of P30,000 is expected to be paid on the loan. Liquidation costs of P60,000 are expected to be incurred. Information on transactions for the six months ended June 30, 20x1: Only 75% of the total account receivable was collected. The remaining balance was written-off. The interest on the note was collected in full but only P180,000 was collected on the principal. The remaining balance was written-off. Inventory with book value of P530,000 was sold for P590,000. The prepaid assets were written-off. The land and building were sold for P5,200,000, while the equipment was sold for P440,000. Only P50,000 of the accrued expenses were paid. The balance remains outstanding. The current tax payable was paid in full. The loan payable and interest payable were paid in full. The lender accepted P440,000 as full settlement of the note payable. Actual administrative expenses paid amounted to P54,000. Requirements: a. Provide the following journal entries in the books of the receiver: i. opening journal entry 194 Chapter 5 ii. iii. "new" assets and liabilities transactions during 20x1 (you may use a compound entry if you like) b. Prepare the statement of realization and liquidation. c. Compute for the ending balance of cash. d. Compute for the ending balance of the estate deficit account and make a reconciliation for the computed cash balance.
2. from to recover Use the financial position of Big Co. in the preceding problem but ignore the additional information. Instead, use the additional information provided below. 2000 6000 4.0000 1.000 cit) (1.342 7,4000 0 interest to sell ties for the e price aid for the 00,000, incure 00. to the ured Big Co.'s 4 e . s liquidation is entrusted to Small, a receiver. on January 1, 20x1: Information Interest of P20,000 is expected to be collected on the note and interest of P30,000 is expected to be paid on the loan. Liquidation costs of P60,000 are expected to be incurred. Information on transactions for the six months ended June 30, 20x1: Only 75% of the total account receivable was collected. The remaining balance was written-off. The interest on the note was collected in full but only P180,000 was collected on the principal. The remaining balance was written-off. Inventory with book value of P530,000 was sold for P590,000. The prepaid assets were written-off. The land and building were sold for P5,200,000, while the equipment was sold for P440,000. Only P50,000 of the accrued expenses were paid. The balance remains outstanding. The current tax payable was paid in full. The loan payable and interest payable were paid in full. The lender accepted P440,000 as full settlement of the note payable. Actual administrative expenses paid amounted to P54,000. Requirements: a. Provide the following journal entries in the books of the receiver: i. opening journal entry 194 Chapter 5 ii. iii. "new" assets and liabilities transactions during 20x1 (you may use a compound entry if you like) b. Prepare the statement of realization and liquidation. c. Compute for the ending balance of cash. d. Compute for the ending balance of the estate deficit account and make a reconciliation for the computed cash balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2.
from
to recover
Use the financial position of Big Co. in the preceding problem
but ignore the additional information. Instead, use the
additional information provided below.
2000
6000
4.0000
1.000
cit) (1.342
7,4000
0 interest
to sell
ties for the
e price
aid for the
00,000,
incure
00.
to the
ured
Big Co.'s
4
e
.
s liquidation is entrusted to Small, a receiver.
on January 1, 20x1:
Information
Interest of P20,000 is expected to be collected on the note and
interest of P30,000 is expected to be paid on the loan.
Liquidation costs of P60,000 are expected to be incurred.
Information
on transactions for the six months ended June 30, 20x1:
Only 75% of the total account receivable was collected. The
remaining balance was written-off.
The interest on the note was collected in full but only P180,000
was collected on the principal. The remaining balance was
written-off.
Inventory with book value of P530,000 was sold for P590,000.
The prepaid assets were written-off.
The land and building were sold for P5,200,000, while the
equipment was sold for P440,000.
Only P50,000 of the accrued expenses were paid. The balance
remains outstanding.
The current tax payable was paid in full.
The loan payable and interest payable were paid in full.
The lender accepted P440,000 as full settlement of the note
payable.
Actual administrative expenses paid amounted to P54,000.
Requirements:
a. Provide the following journal entries in the books of the
receiver:
i. opening journal entry
Transcribed Image Text:194
Chapter 5
ii.
iii.
"new" assets and liabilities
transactions during 20x1 (you may use a compound entry if you like)
b. Prepare the statement of realization and liquidation.
c. Compute for the ending balance of cash.
d. Compute for the ending balance of the estate deficit account and
make a reconciliation for the computed cash balance.
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