Down Dog Corporation filed a petition for bankruptcy on June 30, 2014. Data relevant to its financial position as of this date are: Cash Accounts receivable-net Inventories Equipment-net Total assets Accounts payable Rent payable Wages payable Note payable plus accrued interest Capital stock Retained earnings (deficit) Total liabilities and equity Requirements: Book Value P3,000 72,000 60,000 165,000 P300,000 P72,000 21,000 45,000 96,000 180,000 (120.000) P300.000 Estimated Net Realizable Values P3,000 48,000 72,000 87,000 P210,000 1. Prepare a statement of affairs assuming that the note payable and interest are secured by a mortgage on the equipment. 2. Estimate the amount that will be paid to each class of claims if priority liquidation expenses, including trustee fees, are P24,000 and estimated net realizable values are realized.
Down Dog Corporation filed a petition for bankruptcy on June 30, 2014. Data relevant to its financial position as of this date are: Cash Accounts receivable-net Inventories Equipment-net Total assets Accounts payable Rent payable Wages payable Note payable plus accrued interest Capital stock Retained earnings (deficit) Total liabilities and equity Requirements: Book Value P3,000 72,000 60,000 165,000 P300,000 P72,000 21,000 45,000 96,000 180,000 (120.000) P300.000 Estimated Net Realizable Values P3,000 48,000 72,000 87,000 P210,000 1. Prepare a statement of affairs assuming that the note payable and interest are secured by a mortgage on the equipment. 2. Estimate the amount that will be paid to each class of claims if priority liquidation expenses, including trustee fees, are P24,000 and estimated net realizable values are realized.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Down Dog Corporation filed a petition for bankruptcy on June 30, 2014. Data relevant to its
financial position as of this date are:
Cash
Accounts receivable-net
Inventories
Equipment-net
Total assets
Accounts payable
Rent payable
Wages payable
Note payable plus accrued interest
Capital stock
Retained earnings (deficit)
Total liabilities and equity
Requirements:
Book Value
P3,000
72,000
60,000
165,000
P300,000
P72,000
21,000
45,000
96,000
180,000
(120.000)
P300.000
Estimated Net
Realizable Values
P3,000
48,000
72,000
87,000
P210,000
1. Prepare a statement of affairs assuming that the note payable and interest
are secured by a mortgage on the equipment.
2. Estimate the amount that will be paid to each class of claims if priority
liquidation expenses, including trustee fees, are P24,000 and estimated net
realizable values are realized.
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