The following information was gathered from the books of Gorgeous Company which is currently undergoing bankruptcy proceedings. · Note payable of P97,500 is secured by furniture and equipment with a carrying amount of P120,000 that is estimated to be 75% realizable. · A mortgage payable of P192,500 is secured by building valued at P35,000 less than carrying amount of P230,000 · Assets not mentioned above have an estimated value of P62,500, an amount that is P15,000 above carrying amount. · Total liabilities not mentioned above total P96,000, including claims with priority of P18,500 How much is the amount available to Unsecured Creditors?
The following information was gathered from the books of Gorgeous Company which is currently undergoing bankruptcy proceedings. · Note payable of P97,500 is secured by furniture and equipment with a carrying amount of P120,000 that is estimated to be 75% realizable. · A mortgage payable of P192,500 is secured by building valued at P35,000 less than carrying amount of P230,000 · Assets not mentioned above have an estimated value of P62,500, an amount that is P15,000 above carrying amount. · Total liabilities not mentioned above total P96,000, including claims with priority of P18,500 How much is the amount available to Unsecured Creditors?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information was gathered from the books of Gorgeous Company which is currently undergoing bankruptcy proceedings.
· Note payable of P97,500 is secured by furniture and equipment with a carrying amount of P120,000 that is estimated to be 75% realizable.
· A mortgage payable of P192,500 is secured by building valued at P35,000 less than carrying amount of P230,000
· Assets not mentioned above have an estimated value of P62,500, an amount that is P15,000 above carrying amount.
· Total liabilities not mentioned above total P96,000, including claims with priority of P18,500
How much is the amount available to Unsecured Creditors?
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