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8. How much "liabilities liquidated" is presented on Rainy's statement of realization and liquidation? c. 1,180,000 a. 3,100,000 b. 1,290,000 d. 1,520,000

8. How much "liabilities liquidated" is presented on Rainy's statement of realization and liquidation? c. 1,180,000 a. 3,100,000 b. 1,290,000 d. 1,520,000

FINANCIAL ACCOUNTING
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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This is under Corp Liquidation and Reorganization

expect to collect the remaining receivahles in the next quarter. third party collectors amounted to P108,000. The collectors • 90% of the accounts receivable were collected. Commission of Rainy Co.'s financial position before its liquidation is as follows: ASSETS LIABILITIES AND EQUITY Cash 100,000 Accounts payable 600,000 Loan payable 900,000 Share capital 400,000 Retained earnings (deficit) 2,000,000 Total 1,600,000 1,500,000 2,000,000 Accounts receivable Inventory Equipment; net (3,100,000) 2,000,000 Total Transactions in the first quarter of liquidation are as follows:
Transcribed Image Text:expect to collect the remaining receivahles in the next quarter. third party collectors amounted to P108,000. The collectors • 90% of the accounts receivable were collected. Commission of Rainy Co.'s financial position before its liquidation is as follows: ASSETS LIABILITIES AND EQUITY Cash 100,000 Accounts payable 600,000 Loan payable 900,000 Share capital 400,000 Retained earnings (deficit) 2,000,000 Total 1,600,000 1,500,000 2,000,000 Accounts receivable Inventory Equipment; net (3,100,000) 2,000,000 Total Transactions in the first quarter of liquidation are as follows:
The equipment was sold for P380,000 after it was refurbished Half of the inventory was sSold at 80% of carrying amount. The other half is expected to be sold at 60% of carrying amount. for P50,000. P100,000 accounts payable were paid. The balance remains outstanding. Employee termination benefits of P100,000 were recorded and PS0,000 of that amount were paid. The lender accepted P1,000,000 as full payment of the loan. Liquidation costs of P50,000 were paid. Scrap materials from clearing the warehouse were sold for P10,000. 8. How much "liabilities liquidated" is presented on Rainy's statement of realization and liquidation? c. 1,180,000 a. 3,100,000 b. 1,290,000 d. 1,520,000
Transcribed Image Text:The equipment was sold for P380,000 after it was refurbished Half of the inventory was sSold at 80% of carrying amount. The other half is expected to be sold at 60% of carrying amount. for P50,000. P100,000 accounts payable were paid. The balance remains outstanding. Employee termination benefits of P100,000 were recorded and PS0,000 of that amount were paid. The lender accepted P1,000,000 as full payment of the loan. Liquidation costs of P50,000 were paid. Scrap materials from clearing the warehouse were sold for P10,000. 8. How much "liabilities liquidated" is presented on Rainy's statement of realization and liquidation? c. 1,180,000 a. 3,100,000 b. 1,290,000 d. 1,520,000
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