3. San Josh Ltd went into voluntary liquidation on 30 June 2017, its surmmarized staterment of financial position then being: Current assets Share capital: Receivables 5,000 80,000 shares issued at a price Inventory 6000 of $1, called to 50c 40,000 Cash 4,000 15,000 Less: Calls in arrears (20000 at 25c) Non-current assets 5,000 Land 30,000 Plant 20,000 50,000 Total assets 65,000 Current liabilities Payables 20,000 Total Equity 45,000 Net assets 45,000 All assets realised $30,000. Calls in arrears were fully collected. Payables allowed $10000 discount. Costs of liquidation were $2500. Required: Record the above in the Liquidation account, the Liquidator's Cash account and the Shareholders' Distribution account.

3. San Josh Ltd went into voluntary liquidation on 30 June 2017, its surmmarized staterment of financial position then being: Current assets Share capital: Receivables 5,000 80,000 shares issued at a price Inventory 6000 of $1, called to 50c 40,000 Cash 4,000 15,000 Less: Calls in arrears (20000 at 25c) Non-current assets 5,000 Land 30,000 Plant 20,000 50,000 Total assets 65,000 Current liabilities Payables 20,000 Total Equity 45,000 Net assets 45,000 All assets realised $30,000. Calls in arrears were fully collected. Payables allowed $10000 discount. Costs of liquidation were $2500. Required: Record the above in the Liquidation account, the Liquidator's Cash account and the Shareholders' Distribution account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Linden Corporations is negotiating for the purchase of Hill Company. The following is an abbreviated…

A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method…

Q: Accounts for liquidation Mammal Ltd went into voluntary liquidation on 30 June 2023. Its…

A: SOLUTION- LIQUIDATION- IT IS A PROCESS BRINGING A BUSINESS TO AN END AND DISTRIBUTING THE ASSETS TO…

Q: ABC Company filed for liquidation with the Philippine Securities and Exchange Commission. Its latest…

A: 1) computation of non-cash current assets: Carrying amount of the non-cash current assets = 75% of…

Q: Pearl Limited acquired 100% of the issued capital of Silver Limited on 1 July 2010, for $90,000.…

A: The consolidated financial statement is prepared after the elimination of unrealized gain and…

Q: On January 1, 2023, Pantop Corporation acquired 85% of the outstanding common stock of Song Company…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: On 1st January 2022 Company A acquired 51% of the ordinary shares of Company B. The Statement of…

A: Acquisition can refer to the process of acquiring or obtaining something, often with the implication…

Q: On January 2,2016, the Board of Directors Kyle Mining Corporation declared a cash dividend of…

A: Liquidating Dividend:-A liquidating dividend is a distribution of cash or other assets to…

Q: uity balances. On January 2, 2025, it purchased for cash $20,760 of d interest of $4,100 during the…

A: Answer :a) Net income Net income = Interest received Net income = $4,100 b) Comprehensive income…

Q: None

A: Concurrent Eliminations for balance sheet items (Pour Comp & Spruce Com)Scenario: Spruce Company…

Q: Flint Products Inc. has the following account balances on March 31, 2023: Inventory Buildings (net)…

A: On financial reorganization, organization is required to pass journal entry for appropriate…

Q: What amount of FICA taxes (self-employment and employment related) does Kyle owe f

A: Tax refers to the compulsory form of tax levied by the government on the sum value of money gained…

Q: 1. Initial Value Method vs Equity Method (Spring 2015 Midterm) On January 1, 2012, Franel Co.…

A: The objective of the question is to calculate the difference in Franel Co.'s income if it used the…

Q: Pacific Inc. acquires all of the voting stock of Skye Company for $360 in cash. Skye's balance sheet…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: P company paid $3,600,000 in cash, to acquire 90%of S company on January 1, 2014. The total…

Q: TQ2). Maisara Bhd (MB) purchased Jujur Sdn Bhd (JSB) on 1 January 2009. On the date of purchased the…

A: Workings for Consolidated Financial StatementsWorkings for Non-Controlling Interest:NCI = Fair value…

Q: Soprano Co. purchased a 90% interest in the Tenor Co. on January 1, 2020 for P600,000. Any excess of…

A: The objective of the question is to calculate the cost of equity conversion to bring the investment…

Q: Africa Company recently filed for bankruptcy. Immediately before liquidation. Africa Co. had the…

A: The objective of the question is to calculate the net loss during the liquidation process of Africa…

Q: Bolitmore Ltd went into voluntary liquidation on 30 June 2017, its summarised statement of financial…

A: Prepare the liquidation account as follows: The loss on liquidation is $605,000.

Question

3. San Josh Ltd went into voluntary liquidation on 30 June 2017, its surmmarized staterment of
financial position then being:
Current assets
Share capital:
Receivables
5,000
80,000 shares issued at a
price
Inventory
6000
of $1, called to 50c
40,000
Cash
4,000
15,000
Less: Calls in arrears (20000
at 25c)
Non-current assets
5,000
Land
30,000
Plant
20,000 50,000
Total assets
65,000
Current liabilities
Payables
20,000
Total Equity
45,000
Net assets
45,000
All assets realised $30,000. Calls in arrears were fully collected. Payables allowed $10000
discount. Costs of liquidation were $2500.
Required:
Record the above in the Liquidation account, the Liquidator's Cash account and the
Shareholders' Distribution account.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

on January 1, 2014. The following information is available for Santini at that time. Book Value Fair Value Difference Current assets $40,000 $50,000 $10,000 Plant assets 60,000 75,000 15,000 Liabilities (50,000) (50,000) 0 Net assets $50,000 $75,000 Paroz Corporation acquired a 70% interest in Sandberg Corporation for $900,000 when Sandberg's stockholders' equity consisted of $600,000 of Capital Stock and $600,000 of Retained Earnings. The fair values of Sandberg's net assets were equal to their recorded book values. At the time of acquisition, on Paroz's books, Paroz will record goodwill for $60,000 under the parent company theory. goodwill for $85,714 under the entity theory. investment in Sandberg for $1,285,714 under the entity theory. investment in Sandberg for $900,000 under the entity and parent company theories.
Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $ 375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities & equity $3,750,000 The trustee's costs total $296,000, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. 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 $2.3 million is received from sale of the assets? Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If your answer is zero, enter “0”. Enter your answers as positive values. Distribution of proceeds on liquidation: Proceeds from the sale of assets $ Less: 1. First…
Do not give answer in image
1. Initial Value Method vs Equity Method (Spring 2015 Midterm) On January 1, 2012, Franel Co. acquired all of the common stock of Hurlem Corp. For 2012, Hurlem earned net income of $360, 000 and paid dividends of $190,000. Amortization of the patent allocation that was included in the acquisition was $6,000. How much difference would there have been in Franels income with regards to the effect of the investment, between using the equity method or using the initial value method of internal recordkeeping?
D1. Account