Determine the revised estimate of the dividend to be received by unsecured creditors without priority The creditors if the APA Corporation agreed to a liquidation based on the statement of affairs,suggested that unsecured creditors, without priority would receive approximately P.60 on thepeso. The unsecured creditors are interested in determining whether the preliminary estimate stillseems appropriate. The trustee was originally assigned noncash assets of P1,480,000 andcreditors' claims as follows; fully secured, P670,000; partially secured, P400,000; unsecured withpriority, P200,000, and unsecured liabilities (without priority) of P35,000 were subsequentlydiscovered. Assets with a total book value of P45,000 and unsecured liabilities of P410,000 andpartially secured liabilities of P280,000 were paid. Remaining liquidation expenses wereestimated to be P30,000.Assume the remaining noncash assets have an estimated net realizable value as follows:Assets traceable to fully secured creditors. .Assets traceable to partially secured creditors..Remaining assets..P240,000110,000382,000

Answered: Determine the revised estimate of the…

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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Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements?a. Decreases assets and has no effect on net incomeb. Increases expenses and increases stockholders’ equityc. Decreases net income and decreases assetsd. Decreases stockholders’ equity and increases liabilities
Any gain or loss on the restatement of non-monetary items is included: In the profit or loss, without separate disclosure. O In the profit or loss, with separate disclosure. In the other comprehensive income. As part of the equity section in the balance sheet.
When is bad debts expense recorded when using the direct write-off method?
2) Accounts receivable erroneously debited to note receivable Effect on retained earnings -Since these are asset accounts there exists no effect on net income of the entity. Can you explain this? Should it be retained earnings instead of net income?
What is the impact on the accounting equation when a payment of accountable payable is made? what is the impact on accounting equation when an account receivable is collected? what is the impact on the accounting equation when a sell occurs? what is the impact on the accounting equation when stock is issued, in exchange for assets? which of the following accounts is increased by a debit? which of the following camp do not increase with a debit entry? which of the following pairs increase with credit entries? which of the following pairs of accounts are impacted the same with debits and credits? which of the following count normally have a debit balance? what type of account is prepaid insurance?
Communication (income statement): The balance of Interest Expense from accruing interest to be paid has what effect on the income statement in the current year? Multiple Choice A. Decreases net income. B. No effect. C. Increases net income.
With regard to cash dividends, an entry is not made on the A.date or payment and date of declaration. B.date of record. C.date of declaration. D.date of payment.
The adjustment to be made for provision for doubtful debt is O a. Credit profit and loss account and deduct the provision from debtors O b. Debit profit and loss account and deduct the provision from debtors Oc. Credit profit and loss account and add the provision to debtors Od. Debit profit and loss account and add the provision to debtors
unlike depreciation and retained earnings, the interest expense does not have to directly tie on any item on the balance sheet or income statement. True False
What is the unique balance sheet disclosure that the Allowance Method requires, as opposed to the direct write-off method of accounting for bad debts?
How should correction of errors be reported in the financialstatements?
What is the liability created by receiving revenue in advance called (before it is actually earned)? Group of answer choices accrued reveneu prepaid expense unearned revenue accrued expense

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