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four 1 position before the star 1sanh inol ixau

four 1 position before the star 1sanh inol ixau

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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Monday Co.'s financial position before the start of its liquidation Use the following information for the next four questions: is as follows:
Transcribed Image Text:Monday Co.'s financial position before the start of its liquidation Use the following information for the next four questions: is as follows:
Only 60% of the accounts receivable is collectible. 4 How much are the total free assets? The entire inventory is expected to be sold half the price. The equipment is expected to be sold at its carrying amount The land and building are expected to be sold at a lump sum LIABILITIES AND EQUITY if you like) 100,000 Accounts payable Income tax payable 1.560,000 Note payable (secured by equipment) ASSETS 600,000 1,600,000 900,000 s00,000 Loan payable (secured by land & bldg.) 1,200,000 Cash Accounts receivable Inventory Land count and 1,000,000 1,200,000 Share capital 400,000 Retained earnings (deficit) Bauilkding Equipment, net Total 2,000,000 (2,040,000) 4,660,000 4,660,000 Total Additional information: ch Co's The land and building are expected to be sold at a lump sum able value 300,000 price of P2,300,000. The equipment is expected to be sold at its carrying amount but after refurbishment costs of P70,000. Certain accounts payable are measured gross of P23,000 cash discount which Monday intends to take. A supplier waived 300,000 280,000 880,000 180,000 050,000 550,000 00,000 80,000 repayment of a P420,000 account. The taxing authority gave Monday a six-month tax amnesty to settle the tax liability for P780,000. Interests of P80,000 and P70,000 are expected to be paid on the note and loan, respectively. Liquidation costs of P120,000 are expected to be incurred. • SSS, PhilHealth, and Pag-IBIG contributions of P160,000, not reflected on the balance sheet above, are expected to be paid. cured 3. How much is the estimated deficiency to unsecured creditors without priority? a. 697,000 b. 679,000 ct to c. 767,000 d. 817,000 * How much are the total free assets? a. 1,120,000 b. 1,907,000 c. 2,270,000 d. 2,315,000 tion
Transcribed Image Text:Only 60% of the accounts receivable is collectible. 4 How much are the total free assets? The entire inventory is expected to be sold half the price. The equipment is expected to be sold at its carrying amount The land and building are expected to be sold at a lump sum LIABILITIES AND EQUITY if you like) 100,000 Accounts payable Income tax payable 1.560,000 Note payable (secured by equipment) ASSETS 600,000 1,600,000 900,000 s00,000 Loan payable (secured by land & bldg.) 1,200,000 Cash Accounts receivable Inventory Land count and 1,000,000 1,200,000 Share capital 400,000 Retained earnings (deficit) Bauilkding Equipment, net Total 2,000,000 (2,040,000) 4,660,000 4,660,000 Total Additional information: ch Co's The land and building are expected to be sold at a lump sum able value 300,000 price of P2,300,000. The equipment is expected to be sold at its carrying amount but after refurbishment costs of P70,000. Certain accounts payable are measured gross of P23,000 cash discount which Monday intends to take. A supplier waived 300,000 280,000 880,000 180,000 050,000 550,000 00,000 80,000 repayment of a P420,000 account. The taxing authority gave Monday a six-month tax amnesty to settle the tax liability for P780,000. Interests of P80,000 and P70,000 are expected to be paid on the note and loan, respectively. Liquidation costs of P120,000 are expected to be incurred. • SSS, PhilHealth, and Pag-IBIG contributions of P160,000, not reflected on the balance sheet above, are expected to be paid. cured 3. How much is the estimated deficiency to unsecured creditors without priority? a. 697,000 b. 679,000 ct to c. 767,000 d. 817,000 * How much are the total free assets? a. 1,120,000 b. 1,907,000 c. 2,270,000 d. 2,315,000 tion
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