expect to collect the remaining receivahles in the next quarter.third party collectors amounted to P108,000. The collectors• 90% of the accounts receivable were collected. Commission ofRainy Co.'s financial position before its liquidation is as follows:ASSETSLIABILITIES AND EQUITYCash100,000 Accounts payable600,000 Loan payable900,000 Share capital400,000 Retained earnings (deficit)2,000,000 Total1,600,0001,500,0002,000,000Accounts receivableInventoryEquipment; net(3,100,000)2,000,000TotalTransactions in the first quarter of liquidation are as follows: The equipment was sold for P380,000 after it was refurbishedHalf of the inventory was sSold at 80% of carrying amount. Theother half is expected to be sold at 60% of carrying amount.for P50,000.P100,000 accounts payable were paid. The balance remainsoutstanding.Employee termination benefits of P100,000 were recorded andPS0,000 of that amount were paid.The lender accepted P1,000,000 as full payment of the loan.Liquidation costs of P50,000 were paid.Scrap materials from clearing the warehouse were sold forP10,000.8. How much "liabilities liquidated" is presented on Rainy'sstatement of realization and liquidation?c. 1,180,000a. 3,100,000b. 1,290,000d. 1,520,000

To settle financial commitments, pay off debts, and distribute any remaining proceeds to…

Rainy Co.'s financial position before its liquidation is as follows: ASSETS LIABILITIES AND EQUITY Accounts payable Cash 100,000 600,000 Loan payable 900,000 Share capital 400,000 Retained earnings (deficit) 2,000,000 Total Accounts receivable Inventory Equipment, net Total 1,600,000 1,500,000 2,000,000 (3,100,000) 2,000,000 Transactions in the first quarter of liquidation are as follows: 90% of the accounts receivable were collected. Commission of third party collectors amounted to P108,000. The collectors expect to collect the remaining receivables in the next quarter. :

Rainy Co.'s financial position before its liquidation is as follows: ASSETS LIABILITIES AND EQUITY Accounts payable Cash 100,000 600,000 Loan payable 900,000 Share capital 400,000 Retained earnings (deficit) 2,000,000 Total Accounts receivable Inventory Equipment, net Total 1,600,000 1,500,000 2,000,000 (3,100,000) 2,000,000 Transactions in the first quarter of liquidation are as follows: 90% of the accounts receivable were collected. Commission of third party collectors amounted to P108,000. The collectors expect to collect the remaining receivables in the next quarter. :

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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Rainy Co financial position before its liquidation is as follows: Assets Cash 100,000 Accounts receivable 600,000 Inventory 900,000 Equipment, net 400,000 total 2,000,000 Liab and Equity Accounts payable 1,600,000 Loan payable 1,500,000 Share Capital 2,000,000 Retained Earnings (deficit) (3,100,000) total 2,000,000 Transactions in the first quarter of liquidation are as follows: -90% of the accounts receivable were collected. Commission of third party collectors amounted to 108,000. The collectors expect to collect the remaining receivables in the next quarter. -Half of the inventory was sold at 80% of carrying amount. The other half is expected to be sold at 60% of carrying amount. -the equipment was sold for 380,000 after it was refurbished for 50,000 -100,000 accounts payable were paid -employee termination benefits of 100,000 were recorded and 80,000 of that amount were paid -the lender accepted 1,000,000 as full payment of the loan -the liquidation costs of 50,000 were paid…
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