ADVANCED FINANCIAL ACCOUNTING-ACCESS
ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
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Chapter 16, Problem 16.11.9AE
To determine

Concept introduction:

Personal financial statement: Each partner is required to furnish personal financial statements to determine each partner’s personal solvency. A personal financial statement consists of, a statement of financial condition or a personal balance, sheet, and statement of change in net worth, or personal income statement. ASC 274 gives guidelines for the preparation of personal financial statements.

To choose: Correct answer to determine the amount to be reported by K in marketable equity securities at December 31, 20X3.

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Please answer it in a good accounting form. Thank you! The following selected account balances were taken from the balance sheet of Quitting Corp. as of December 31, 2020, immediately before the take over of the trustee:Marketable securities  P300,000Inventories           110,000Land                150,000Building             400,000Additional information:• 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 is 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 is estimated to be P40,000.• Land and building are estimated to have a total realizable value of P450,000. This property is pledged to secure the mortgage payable of P250,000.What is the estimated amount available for preferred claims and unsecured creditors out of the EXCESS assets pledged with fully…
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Chapter 16 Solutions

ADVANCED FINANCIAL ACCOUNTING-ACCESS

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