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expected to produce P70,000, which must be allocated to unse P105,000. The following are some of the claims outstanding: 1. Accounting fees for APA, P1,500. 2. An unrecorded note for P1,000, on which P60 of intere 3. A note for P3,000 secured by P4,000 receivables, estir JDA. 4. AP1,500 note, on which P30 of interest has accrued, value of P1. 000 and a market value of P1 800 is pledge

expected to produce P70,000, which must be allocated to unse P105,000. The following are some of the claims outstanding: 1. Accounting fees for APA, P1,500. 2. An unrecorded note for P1,000, on which P60 of intere 3. A note for P3,000 secured by P4,000 receivables, estir JDA. 4. AP1,500 note, on which P30 of interest has accrued, value of P1. 000 and a market value of P1 800 is pledge

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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Compute the estimated payment to partially secured creditors:

APA, a CPA, has prepared a statement of affairs. Assets which there are no claims or liens are expected to produce P70,000, which must be allocated to unsecured claims of all classes totalling P105,000. The following are some of the claims outstanding: 1. Accounting fees for APA, P1,500. 2. An unrecorded note for P1,000, on which P60 of interest has accrued, held by ABC. 3. A note for P3,000 secured by P4,000 receivables, estimated to be 60% collectible held by JDA. 4. AP1,500 note, on which P30 of interest has accrued, held by JBA. Property with a book value of P1,000 and a market value of P1,800 is pledged to guarantee payment of principal and interest. Unpaid income taxes of P3,500.
Transcribed Image Text:APA, a CPA, has prepared a statement of affairs. Assets which there are no claims or liens are expected to produce P70,000, which must be allocated to unsecured claims of all classes totalling P105,000. The following are some of the claims outstanding: 1. Accounting fees for APA, P1,500. 2. An unrecorded note for P1,000, on which P60 of interest has accrued, held by ABC. 3. A note for P3,000 secured by P4,000 receivables, estimated to be 60% collectible held by JDA. 4. AP1,500 note, on which P30 of interest has accrued, held by JBA. Property with a book value of P1,000 and a market value of P1,800 is pledged to guarantee payment of principal and interest. Unpaid income taxes of P3,500.
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