PROBLEM 6 The following data were taken from the statement of realization and liquidation of CRASHED CO. Assets to be realized 1,375,000           Assets acquired 750,000 Supplementary credits 2,800,000       Assets realized 1,200,000 Liabilities to be liquidated 2,250,000   Liabilities assumed 1,625,000 Supplementary charges 3,125,000      Assets not realized 1,375,000 Liabilities liquidated 1,875,000              Liabilities not liquidated 1,700,000 The ending balances of capital stock and retained earnings are P1,500,000 and P238,000, respectively. A net loss of P738,000 was reported for the period. Requirements: 1) What is the net gain/(loss) for the three-month period? A. (325,000) C. 425,000 B. 250,000 D. 750,000 2) How much is the ending balance of cash? A. 425,000 C. 1,325,000 B. 575,000 D. 1,375,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

PROBLEM 6
The following data were taken from the statement of realization and
liquidation of CRASHED CO.
Assets to be realized 1,375,000           Assets acquired 750,000
Supplementary credits 2,800,000       Assets realized 1,200,000
Liabilities to be liquidated 2,250,000   Liabilities assumed 1,625,000
Supplementary charges 3,125,000      Assets not realized 1,375,000
Liabilities liquidated 1,875,000              Liabilities not liquidated 1,700,000
The ending balances of capital stock and retained earnings are P1,500,000 and P238,000, respectively. A net loss of P738,000 was reported for the period.


Requirements:

1) What is the net gain/(loss) for the three-month period?
A. (325,000) C. 425,000
B. 250,000 D. 750,000
2) How much is the ending balance of cash?
A. 425,000 C. 1,325,000
B. 575,000 D. 1,375,000

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Statements
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education