ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 20, Problem 20.4E
Chapter 7 Liquidation
Penn Inc.'s assets have the carrying values and estimated fair values as follows:
Penn's debts follow:
Required
a. Prepare a schedule to calculate the net estimated amount available for general unsecured creditors.
b. Compute the percentage dividend to general unsecured creditors.
c. Prepare a schedule showing the amount to be paid each of the creditors groups upon distribution of the $471,000 estimated to be realizable.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Compute the estimated payment to partially secured creditors:
The estimated recovery percentage or dividend to unsecured creditors is calculated by which of the following formulas?
-Estimated amount available for unsecured creditors with/without priority divided by total claims of all unsecured creditors with/without priority
-Net free assets divided by the total claims of unsecured creditors with/without priority
-Estimated gain/loss on liquidation divided try total estimated net realizable value of debtor assetsa
-Net estimated proceeds available to general unsecured creditors divided by total claims of general unsecured creditors
Requirement:
Compute for the Adjusted Profit for the year ended December 31, 20x1.
Chapter 20 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
Ch. 20 - What are the nonjudicial actions available to a...Ch. 20 - What is the difference between a Chapter 7 action...Ch. 20 - Prob. 20.3QCh. 20 - What is usually included in the plan of...Ch. 20 - Prob. 20.5QCh. 20 - Prob. 20.6QCh. 20 - Prob. 20.7QCh. 20 - Prob. 20.8QCh. 20 - How is the statement of affairs used in planning...Ch. 20 - What are the financial reporting responsibilities...
Ch. 20 - Prob. 20.11QCh. 20 - Creditors' Alternatives The creditors of Lost Hope...Ch. 20 - Prob. 20.3CCh. 20 - Prob. 20.1.1ECh. 20 - Prob. 20.1.2ECh. 20 - Prob. 20.1.3ECh. 20 - Prob. 20.1.4ECh. 20 - Prob. 20.1.5ECh. 20 - Prob. 20.2ECh. 20 - Prob. 20.3.1ECh. 20 - Prob. 20.3.2ECh. 20 - Prob. 20.3.3ECh. 20 - Prob. 20.3.4ECh. 20 - Prob. 20.3.5ECh. 20 - Chapter 7 Liquidation Penn Inc.'s assets have the...Ch. 20 - Prob. 20.5ECh. 20 - Chapter 11 Reorganization During the recent...Ch. 20 - Prob. 20.7PCh. 20 - Chapter 7 Liquidation, Statements of Affairs...Ch. 20 - Prob. 20.9P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The statement of affairs prepared by the trustee at this time should include an estimated deficiency to unsecured creditors of:arrow_forwardUse the following information to perform the calculations below (using the indirect method). Net income. Depreciation expense Beginning accounts receivable Ending accounts receivable Beginning inventory Ending inventory Beginning prepaid insurance Ending prepaid insurance $400,000 91,000 429,000 433,000 514,000 578,000 40,700 46,400 Beginning accounts payable Ending accounts payable Purchase of long-term assets Issuance of long-term debt Issuance of stock for cash Issuance of stock for long-term assets Purchase of treasury stock Sale of long-term investment at cost $122,000 145,000 754,000 264,000 167,000 105,000 64,500 54,500arrow_forwardLugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay its debts. The statement of financial position on that date shows: ASSETS LIABILITIES & EQUITY Cash Accounts Receivable Note Receivable Inventory Prepaid Expenses Land and Building Equipment, net P5,400 78,700 37,000 175,700 1,900 122,500 97,600 Accounts Payable Notes Payable – PNB Notes Payable - suppliers Accruedwages Accruedtaxes P105,000 30,000 102,500 3,700 9,300 180,000 150,000 (61,700) P518,800 Mortgage Bonds Payable Common stock-P100 par Retained Earnings Total Liabilities & Equity Total Assets P518,800 Additional information: a. Accounts receivable of P32,220 and notes receivable of P25,000 are expected to be collectible. The good notes are pledged to PhilippineNational Bank. b. Inventories are expectedto bring in P90,200when soldunder bankruptcyconditions. Landand buildingshave an appraised value of P190,000. They serveas security on the bonds. d. The currentvalue of the…arrow_forward
- You have partial information from an entity financial statements as follows: Accounts receivable Allowance for doubtful accounts Inventory FV-NI Investments Accounts payable Unearned revenues Equipment Accumulated depreciation - equipment Sales Cost of goods sold Depreciation expense Bad debt expense Loss on sale of equipment Loss on sale of FV-NI investments Holding gain- FV-NI investments Note also the following: Accounts written off that were recoved during 2024: $ $ $ $ $ 2024 4,450,000 $ (198,000) $ 3,820,000 $ 1020000 2,740,000 $ 365,000 $ 200,000 -98,000 $ $ $ $ $ 2023 3,690,000 (165,000) 4,490,000 925000 2,630,000 430,000 189,000 -89,000 20,560,000 9,250,000 10,000 356,000 5,500 5000 33000 25,000 Required 1) Calculate the cash collected from customers in 2024. 2) Calculate the cash paid to suppliers for purchase of inventory. 3) One FV-NI investment was sold during the year. Its carrying value at the beginning of the year was: $ 125,000 Calculate the NET cash generated/used up…arrow_forwardIncome statement and statement of financial position. Information attached below.arrow_forward19 - Which of the following is the account in which the net loss after tax for the operating period of the business is followed in the balance sheet ? a) 542 Extraordinary Reserves Hs. B) 591 Net Loss for the Period Hs. NS) 540 Legal Reserves Hs. D) 541 Status Reserves Hs. TO) 590 Net Profit for the Period Hs.arrow_forward
- Compute the following ratiosat December 31, 2019: i.Current ratio ii.Acid-test Ratio iii.Account Receivables Turnover iv.Average collection period v.Inventory Turnover vi.Days in inventory vii.Profit margin viii.Debts to Asset ratio ix.Return on Assets x.Times Interest Earnedarrow_forwardYou have been provided with Leonard Corporation's partial Statement of Financial Position and the Statement of Comprehensive Income for the year ended December 31, 2021. Leonard Corporation Partial Statement of Financial Position For the Year Ended December 31, 2021 Accounts receivable -net Prepaid expenses Inventory Property, Plant & Equipment Accumulated Depreciation Accounts payable Income taxes payable Deferred revenue 2021 Sales....... Cost of goods sold.. Gross Margin. Selling, general and admin Depreciation expense $440,000 482,000 45,000 31,000 825,000 810,000 2,475,000 2,105,000 2020 (866,000) (823,000) 184,000 197,000 38,000 35,000 47,000 42,000 Leonard Corporation Statement of Comprehensive Income For the Year Ended December 31, 2021 Interest expense..... Gain on sale of PPE Net income before taxes Income Tax Expense Net income and comprehensive income... $3,560,000 1,950,000 1,610,000 (595,000) (320,000) (115,300) 55,400 635,100 95,300 .$539,800 Additional information:…arrow_forwardplease Complete all requirement and Do not give solution in image format Otherwise down votearrow_forward
- The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2024, included the following accounts: Account Title Sales revenue Cost of goods sold Selling and administrative expense Interest expense Gain on debt securities Gross profit Operating expenses: Required: Prepare a single, continuous multiple-step statement of comprehensive income. LINDOR CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2024 The gain on debt securities is unrealized and classified as other comprehensive income. The trial balance does not include the accrual for income taxes. Lindor's income tax rate is 25%. Operating income Other income (expense): Income before income taxes Net income Other comprehensive income (net of tax): Debits Comprehensive income $ 1,590,000 431,000 59,000 $ 0 0 0 Credits $ 2,700,000 0 99,000arrow_forwardProblem No. 5 DAP Company started operation on January 1, 2018 and acquired the following securities: Trading Securities Portfolio Abad Company Aquino Company Lacierda Company Fair value P2,400,000 2,600,000 1,900,000 Fair value FVTOCI Portfolio Coloma Company Soliman Company Villanueva Company P3,050,000 2,725,000 1,875,000 No disposals were made during 2018. The fair values of the investment securities as of December 31, 2018 are as follows: Trading Securities Portfolio Abad Company Aquino Company Lacierda Company Fair value P2,380,000 2,600,000 1,870,000 Page |S/TOCI Portfolio Coloma Company Soliman Company Villanueva Company Fair value P3,070,000 2,737,500 1,871,000 The following additional transactions happened in 2019: On September 1, DAP Company sold its Aquino Company securities for P2,590,000. On October 1, DAP Company exchanged it Soliman Company portfolio for a piece of land. The carrying amount of the land was P1,937,500 an a zonal value of P2,777,500. At the time of…arrow_forwardAt May 31, 2019, Acai Associates reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 2019 $ 59,000 32,450 642 125 620 2018 $ 57,000 29,070 590 230 4,846 Required: 1. Compute the debt-to-assets ratio and times interest earned ratio for 2019 and 2018. 2-a. In 2019, were creditors providing a greater (or lesser) proportion of financing for Acai's assets? 2-b. In 2019, was Acai more (or less) successful at covering its interest costs, as compared to 2018?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
What is liquidity?; Author: The Finance Storyteller;https://www.youtube.com/watch?v=XtjS7CfUSsA;License: Standard Youtube License