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 ofRainy Co.'s financial position before its liquidation is as follows:ASSETSLIABILITIES AND EQUITYCash100,000 Accounts payable600,000 Loan payable900,000 Share capital400,000 Retained earnings (deficit)2,000,000 Total1,600,0001,500,0002,000,000Accounts receivableInventoryEquipment; net(3,100,000)2,000,000TotalTransactions in the first quarter of liquidation are as follows: Half of the inventory was sSold at 80% of carrying amount. Theother half is expected to be sold at 60% of carrying amount.The equipment was sold for P380,000 after it was refurbishedfor P50,000.P100,000 accounts payable were paid. The balance remainsoutstanding.Employee termination benefits of P100,000 were recorded andPS0,000 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 forP10,000.9. How much net gain (loss) is reported on Rainy's statement ofrealization and liquidation?а. 192,000b. 178,000с. (178,000)d. (192,000)

Realization and liquidation is the process of disposing of the assets and liabilities of an…

● e ● Half of the inventory was sold at 80% of carrying amount. The other 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. om clearing the warehouse were sold for Scrap materials P10,000. 9. How much net gain (loss) is reported on Rainy's statement of realization and liquidation? a. 192,000 b. 178,000 c. (178,000) d. (192,000)

● e ● Half of the inventory was sold at 80% of carrying amount. The other 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. om clearing the warehouse were sold for Scrap materials P10,000. 9. How much net gain (loss) is reported on Rainy's statement of realization and liquidation? a. 192,000 b. 178,000 c. (178,000) d. (192,000)

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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