The trust for APA, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60,000 may expect to receive approximately P36,000 if assets are sold for the benefit of creditors. • A is an employee who is owed P750 • B holds a note for P1,000 on which interest of P50 is accrued; nothing has been pledged on the note. • C holds a note of P6,000 on which interest of P300 is accrued; securities with a book value P6,500 and a present market value of P5,000 are pledged on the note. D holds a note for P2,500 on which interest of P150 is accrued property with a book value of P2,000 and a present market value of P3,000 is pledged on the note.
The trust for APA, Inc. prepares a statement of affairs which shows that unsecured creditors whose claims total P60,000 may expect to receive approximately P36,000 if assets are sold for the benefit of creditors. • A is an employee who is owed P750 • B holds a note for P1,000 on which interest of P50 is accrued; nothing has been pledged on the note. • C holds a note of P6,000 on which interest of P300 is accrued; securities with a book value P6,500 and a present market value of P5,000 are pledged on the note. D holds a note for P2,500 on which interest of P150 is accrued property with a book value of P2,000 and a present market value of P3,000 is pledged on the note.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How much may each of the following creditors hope to receive?
Transcribed Image Text:The trust for APA, Inc. prepares a statement of affairs which shows that unsecured creditors
whose claims total P60,000 may expect to receive approximately P36,000 if assets are sold for
the benefit of creditors.
• A is an employee who is owed P750
• B holds a note for P1,000 on which interest of P50 is accrued; nothing has been pledged
on the note.
C holds a note of P6,000 on which interest of P300 is accrued; securities with a book value
P6,500 and a present market value of P5,000 are pledged on the note.
D holds a note for P2,500 on which interest of P150 is accrued property with a book value of
P2,000 and a present market value of P3,000 is pledged on the note.
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