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How much may each value of the following creditors of Ardolio Inc. hope to receive? Compboy 7773 Michael Meldcan Serpor A. P 0 P 0 P 0 P 6, 300 5, 780 5, 780 В. 90 2, 390 C. 350 1, 050 D. 750 630 2, 650

How much may each value of the following creditors of Ardolio Inc. hope to receive? Compboy 7773 Michael Meldcan Serpor A. P 0 P 0 P 0 P 6, 300 5, 780 5, 780 В. 90 2, 390 C. 350 1, 050 D. 750 630 2, 650

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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How much may each value of the following creditors of Ardolio Inc. hope to receive? Compboy P 0 6, 300 Michael Meldcan Serpor P 0 А. Р P 0 В. 90 2, 390 С. 350 1, 050 5, 780 D. 750 630 5, 780 2, 650
Transcribed Image Text:How much may each value of the following creditors of Ardolio Inc. hope to receive? Compboy P 0 6, 300 Michael Meldcan Serpor P 0 А. Р P 0 В. 90 2, 390 С. 350 1, 050 5, 780 D. 750 630 5, 780 2, 650
The trust for Ardolio, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60, 000 may expect to receive approximately P36, 000 if assets are sold for the benefit of creditors. Michael is an employee who is owed P750. Meldcan holds a note for P1, 000 on which interest of P50 is accrued; nothing has been pledged on the note. Compboy holds a note of P6, 000 on which interest of P300 is accrued; securities with a book value of P6,500 and a present market value of P5, 000are pledged on the note. Serpor holds a note for P2,500 on which interest ofP150 is accrued property with a book value of P2,000 and a present market value of P3,000 is pledged on the note. The creditors if the Rogerod Corporation agreed to a liquidation based on the statement of affairs suggested that unsecured creditors, without priority would receive approximately P.60 on the peso. The unsecured creditors are interested in determining whether the preliminary estimate still seems appropriate. The trustee was originally assigned noncash assets of P1,480,000 and creditors' claims as follows: fully secured, P670,000; partially secured, P400,000; unsecured with priority, P200,000, and unsecured without priority, P320,000. Assets with a book value of P45,000 and unsecured liabilities (without priority) of P35,000 were subsequently discovered. Assets with a total book value of P740,000 were sold for P715,000 net. Fully secured liabilities of P410,000 and partially secured liabilities of P280,000 were paid. Remaining liquidation expenses were estimated 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 P 240,000 110,000 382,000
Transcribed Image Text:The trust for Ardolio, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60, 000 may expect to receive approximately P36, 000 if assets are sold for the benefit of creditors. Michael is an employee who is owed P750. Meldcan holds a note for P1, 000 on which interest of P50 is accrued; nothing has been pledged on the note. Compboy holds a note of P6, 000 on which interest of P300 is accrued; securities with a book value of P6,500 and a present market value of P5, 000are pledged on the note. Serpor holds a note for P2,500 on which interest ofP150 is accrued property with a book value of P2,000 and a present market value of P3,000 is pledged on the note. The creditors if the Rogerod Corporation agreed to a liquidation based on the statement of affairs suggested that unsecured creditors, without priority would receive approximately P.60 on the peso. The unsecured creditors are interested in determining whether the preliminary estimate still seems appropriate. The trustee was originally assigned noncash assets of P1,480,000 and creditors' claims as follows: fully secured, P670,000; partially secured, P400,000; unsecured with priority, P200,000, and unsecured without priority, P320,000. Assets with a book value of P45,000 and unsecured liabilities (without priority) of P35,000 were subsequently discovered. Assets with a total book value of P740,000 were sold for P715,000 net. Fully secured liabilities of P410,000 and partially secured liabilities of P280,000 were paid. Remaining liquidation expenses were estimated 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 P 240,000 110,000 382,000
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