• 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 Accounts receivable 1,500,000 Inventory Equipment; net 2,000,000 (3,100,000) 2,000,000 Total Transactions in the first quarter of liquidation are as follows: third narty colloo lloctors
• 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 Accounts receivable 1,500,000 Inventory Equipment; net 2,000,000 (3,100,000) 2,000,000 Total Transactions in the first quarter of liquidation are as follows: third narty colloo lloctors
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
This is under Corp Liquidation and Reorganization
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:
Transcribed Image Text:Half of the inventory was sSold at 80% of carrying amount. The
ather half is expected to be sold at 60% of carrying amount.
The equipment was sold for P380,000 after it was refurbished
for P50,000.
P100,000 accounts payable were paid. The balance remains
outstanding.
Employee termination benefits of P100,000 were recorded and
P80,000 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.
10. How much is the ending balance of the "estate deficit"
account?
a. 978,000
b. 1,008,000
c. 987,000
d. 1,122,000
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