[3] 3. The following data were taken from the statement of affairs of Malakas Company:Book Value Fair ValueBook ValueAssets:Liabilities:CashP6,000Accounts payableWages payable (all havepriority)P6,000P95,000Accounts receivable 60,00060,000Inventories90,00065,0009,500Land14,000Taxes PayableNotes payable (secured by AR100,00080,000Building (net)Equipment (net)220,000160,000and Inventories)190,000100,000 Interest on notes payableBonds payable (secured by250,0005,000land and buildings) 220,00011,000Interest on bonds payableWhat is the estimated deficiency to unsecured creditors?• P73,000• P73,500• P68,000• P68,500

Calculation of available cash for liabilities Particulars Computation Amount (in P) Cash 6000…

3. The following data were taken from the statement of affairs of Malakas Company: Book Value Fair Value Book Value Assets: Liabilities: Cash P6,000 Accounts receivable 60,000 Accounts payable Wages payable (all have priority) P6,000 P95,000 60,000 Inventories 90,000 65,000 9,500 Land 100,000 80,000 Taxes Payable 14,000 Notes payable (secured by AR and Inventories) 160,000 100,000 Interest on notes payable Building (net) 220,000 190,000 Equipment (net) 250,000 5,000 Bonds payable (secured by land and buildings) 220,000 11,000 Interest on bonds payable What is the estimated deficiency to unsecured creditors? • P73,000 • P73,500 • P68,000 P68,500

3. The following data were taken from the statement of affairs of Malakas Company: Book Value Fair Value Book Value Assets: Liabilities: Cash P6,000 Accounts receivable 60,000 Accounts payable Wages payable (all have priority) P6,000 P95,000 60,000 Inventories 90,000 65,000 9,500 Land 100,000 80,000 Taxes Payable 14,000 Notes payable (secured by AR and Inventories) 160,000 100,000 Interest on notes payable Building (net) 220,000 190,000 Equipment (net) 250,000 5,000 Bonds payable (secured by land and buildings) 220,000 11,000 Interest on bonds payable What is the estimated deficiency to unsecured creditors? • P73,000 • P73,500 • P68,000 P68,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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