The condensed statement of financial position as of January 1, 2022 of ABC Corporation is undergoing liquidation and has provided the following information: Cash Accounts Receivables Merchandise Inventory Prepaid expenses Building (net) Goodwill Total Assets ABC CORPORATION Statement of Financial Position As of January 1, 2022 ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Accrued Salaries Payable Accounts Payable Mortgage Payable Loan Payable Note Payable Ordinary shares Deficit Total Liabilities and Equity P 57,100 170,400 40,000 1,250 172,500 27,500 P 468,750 P 25,000 54,250 200,000 110,000 40,000 60,000 (20,500) P 468,750 a) The mortgage payable is secured by the building having a realizable value of P180,000. b) Accounts payable amounting to P30,000 is secured by receivables amounting to P42,600 which is collectible in the amount of P34,080. The balance in the book value of the receivables which has a realizable value of P117,500 is used to secure the loan payable. c) The inventory has a realizable value of P25,600. In addition to the recorded liabilities are accrued interest on mortgage payable amounting to P2,000, liquidation expenses amounting to P4,750 and taxes amounting to P2,000. (use two decimal places for the recovery percentage) Compute for the total payment to unsecured creditors without priority
The condensed statement of financial position as of January 1, 2022 of ABC Corporation is undergoing liquidation and has provided the following information: Cash Accounts Receivables Merchandise Inventory Prepaid expenses Building (net) Goodwill Total Assets ABC CORPORATION Statement of Financial Position As of January 1, 2022 ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY Accrued Salaries Payable Accounts Payable Mortgage Payable Loan Payable Note Payable Ordinary shares Deficit Total Liabilities and Equity P 57,100 170,400 40,000 1,250 172,500 27,500 P 468,750 P 25,000 54,250 200,000 110,000 40,000 60,000 (20,500) P 468,750 a) The mortgage payable is secured by the building having a realizable value of P180,000. b) Accounts payable amounting to P30,000 is secured by receivables amounting to P42,600 which is collectible in the amount of P34,080. The balance in the book value of the receivables which has a realizable value of P117,500 is used to secure the loan payable. c) The inventory has a realizable value of P25,600. In addition to the recorded liabilities are accrued interest on mortgage payable amounting to P2,000, liquidation expenses amounting to P4,750 and taxes amounting to P2,000. (use two decimal places for the recovery percentage) Compute for the total payment to unsecured creditors without priority
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.
Transcribed Image Text:The condensed statement of financial position as of January 1, 2022 of ABC Corporation
is undergoing liquidation and has provided the following information:
Cash
Accounts Receivables
Merchandise Inventory
Prepaid expenses
Building (net)
Goodwill
Total Assets
ABC CORPORATION
Statement of Financial Position
As of January 1, 2022
ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
Accrued Salaries Payable
Accounts Payable
Mortgage Payable
Loan Payable
Note Payable
Ordinary shares
Deficit
Total Liabilities and Equity
P 57,100
170,400
40,000
1,250
172,500
27,500
P 468,750
P 25,000
54,250
200,000
110,000
40,000
60,000
(20,500)
P 468,750
a) The mortgage payable is secured by the building having a realizable value of
P180,000.
b) Accounts payable amounting to P30,000 is secured by receivables amounting to
P42,600 which is collectible in the amount of P34,080. The balance in the book
value of the receivables which has a realizable value of P117,500 is used to secure
the loan payable.
c) The inventory has a realizable value of P25,600. In addition to the recorded
liabilities are accrued interest on mortgage payable amounting to P2,000,
liquidation expenses amounting to P4,750 and taxes amounting to P2,000. (use
two decimal places for the recovery percentage)
Compute for the total payment to unsecured creditors without priority
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