The following selected account balances were taken from the balance sheet of Q Corp December 31, 2021, immediately before the take over of the trustee: Marketable secu P300,000; Inventories P110,00; Land P150,000; Building P400,000. Marketable securiti present market value of P320,000. These securities have been pledged to secure notes P280,000. The estimated worth of inventories of P70,000. However, inventories with b P50,000 have been pledged to secure notes payable of P60,000. The realizable value o
The following selected account balances were taken from the balance sheet of Q Corp December 31, 2021, immediately before the take over of the trustee: Marketable secu P300,000; Inventories P110,00; Land P150,000; Building P400,000. Marketable securiti present market value of P320,000. These securities have been pledged to secure notes P280,000. The estimated worth of inventories of P70,000. However, inventories with b P50,000 have been pledged to secure notes payable of P60,000. The realizable value o
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Inventories should be 110,000
The following selected account balances were taken from the balance sheet of Q Corp. as of
December 31, 2021, immediately before the take over of the trustee: Marketable securities
P300,000; Inventories P110,00; Land P150,000; Building P400,000. Marketable securities have
present market value of P320,000. These securities have been pledged to secure notes payable of
P280,000. The estimated worth of inventories of P70,000. However, inventories with book value of
P50,000 have been pledged to secure notes payable of P60,000. The realizable value of the
inventories pledged estimated to be P40,000. The land and building are estimated to have a total
realizable value of P450,000. This property was pledged to secure the mortgage payable of
PP250,000. What is the amount available for preferred claims and unsecured creditors out of assets
pledged with fully secured creditors?
Your answer
Transcribed Image Text:A, B, and C formed a joint operation. The following were taken from the joint operation's books:
Debit
Credit
JO- Cash
80
B, Capital
60
C, Capital
88
The cost of unsold inventory is P72. The joint operation's profit is P44. How much is the balance of
the joint operation account before distribution of profit?
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