Only 60% of the accounts receivable is collectible. The entire inventory is expected to be sold half the price. The equipment is expected to be sold at its carrying amount LIABILITIES AND EQUITY 100,000 Accounts payable 600,000 Income tax payable 1,560,000 Note payable (secured by equipment) s00,000 Loan payable (secured by land & bldg 1,200,000 Share capital 400,000 Retained earnings (deficit) 4,660,000 Total ASSETS Cash Accounts receivable 1,600,000 Iventory Land Baikding Equipment, net Total 900,000 1,000,000 1,200,000 2,000,000 (2,040,000) 4,660,000 Aditional information: land and building are expected to be sold at a lump sum 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 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.
Only 60% of the accounts receivable is collectible. The entire inventory is expected to be sold half the price. The equipment is expected to be sold at its carrying amount LIABILITIES AND EQUITY 100,000 Accounts payable 600,000 Income tax payable 1,560,000 Note payable (secured by equipment) s00,000 Loan payable (secured by land & bldg 1,200,000 Share capital 400,000 Retained earnings (deficit) 4,660,000 Total ASSETS Cash Accounts receivable 1,600,000 Iventory Land Baikding Equipment, net Total 900,000 1,000,000 1,200,000 2,000,000 (2,040,000) 4,660,000 Aditional information: land and building are expected to be sold at a lump sum 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 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:tatement of affairs shows net free assets oi
196
impairment loss of, approximately,
a. 274,125.
b. 312,316.
an
c. 373,616.
d. 212,417.
claim
c. 51,690
d. 62,410
claim?
b. 57,105
a. 49,614
Transcribed Image Text:Only 60% of the accounts receivable is collectible.
The entire inventory is expected to be sold half the price.
The equipment is expected to be sold at its carrying amount
1,560,000 Note payable (secured by equipment)
LIABILITIES AND EQUITY
100,000 Accounts payable
ASSETS
Cash
Accounts receivable
600,000
Income tax payable
1,600,000
900,000
1,000,000
1,200,000
2,000,000
(2,040,000)
4,660,000
Iventory
Land
aikding
Equipment, net
Total
800,000 Loan payable (secured by larid & bldg)
1,200,000 Share capital
400,000 Retained earnings (deficit)
4,660,000 Total
Additional information:
• land and building are expected to be sold at a lump sum
price
of P2,300,000.
is
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
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education