When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: P 80,000 Current Assets (net realizable value, P50,000) Land and Building (fair value, P240,000) Goodwill (fair value, 0) 200,000 40,000 Total Assets P320,000 Accounts Payable P160,000 200,000 Mortgage Payable (secured by land & building) Ordinary share Accumulated profits Total Liabilities and Equity 100,000 (140,000) P320,000 What percentage of their claims are the unsecured creditors likely to get?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following
statement of financial position:
P 80,000
Current Assets (net realizable value, P50,000)
Land and Building (fair value, P240,000)
Goodwill (fair value, 0)
200,000
40,000
Total Assets
P320,000
Accounts Payable
P160,000
Mortgage Payable (secured by land & building)
Ordinary share
Accumulated profits
Total Liabilities and Equity
200,000
100,000
(140,000)
P320,000
What percentage of their claims are the unsecured creditors likely to get?
Transcribed Image Text:When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: P 80,000 Current Assets (net realizable value, P50,000) Land and Building (fair value, P240,000) Goodwill (fair value, 0) 200,000 40,000 Total Assets P320,000 Accounts Payable P160,000 Mortgage Payable (secured by land & building) Ordinary share Accumulated profits Total Liabilities and Equity 200,000 100,000 (140,000) P320,000 What percentage of their claims are the unsecured creditors likely to get?
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