Professional Documents
Culture Documents
Problem I
1. Statement of Affairs
MINER COMPANY
Statement of Affairs
May 31, 2012
Assets
Book Value
Realizable
Value
P 50,000
1,200
P39,800
1,000
P 40,800
40,000
800
40,800
119,000
Building
Note Payable
Accrued Interest Pay.
75,000
20,000
800
20,800
P 54,200
4,200
10,000
Note Payable
6,000
61,000
60,000
1,100
Free Assets
Cash
Accounts Receivable
Inventory
Prepaid Insurance
Goodwill
6,000
50,000
30,000
400
0
8,500
Total Net Realizable Value
140,600
8,400
2,400
132,200
P 320,000
Book
Value
53,600
P 185,800
Unsecure
d
Equities
Liabilities Having Priority:
P 6,000
P 6,000
Accrued Wages
2,400
2,400
P 8,400
Taxes Payable
60,000
1,600
60,000
1,600
61,600
10,000
10,000
Note Payable
4,200
Equipment
P 5,800
170,000
10,000
110,000
( 50,000)
P 320,000
Unsecured Creditors:
Accounts Payable
Notes Payable
170,000
10,000
Stockholders Equity
Common Stock
Retained Earnings
(Deficit)
P 185,800
Deficiency Account
May 31, 2012
Estimated Losses:
Accounts Receivable
Estimated Gains:
P 11,000
Common Stock
P
110,000
(50,000)
Notes Receivable
10,400
Retained Earnings
Inventory
30,000
Estimated Deficiency to
Buildings
44,000
Unsecured Creditors
Equipment
Prepaid Insurance
Goodwill
53,60
0
9,000
700
8,500
P113,600
P 113,600
1.
Book Value
P165,000
3,000
72,000
60,000
______
P300,000
Assets
Pledged with partially secured creditors
Equipment-net
P87,000
Less: Note payable and accrued interest
(96,000)
Unsecured amount (See below)
(9,000)
Free Assets
Cash
3,000
Accounts receivable-net
48,000
Inventories
72,000
Total net realizable value
123,000
Less: Priority liabilities wages payable
(45,000)
Total available for unsecured creditors
78,000
Estimated deficiency to unsecured creditors 30,000
P108,000
Deficiency
Account
Realizable Value (Loss/Gain)
P
(24,000)
12,000
______
(90,000)
Unsecured
Equities
Book Value
P 45,000
96,000
72,000
27,000
180,000
(120,000)
P300,000
Priority liabilities
Wages payable (assumed under
P4,650 per employee)
Partially secured creditors
Note payable and accrued interest
Less: Equipment pledged as security
Liabilities
P 45,000
P 96,000
(87,000)
Unsecured creditors
Accounts payable
Rent payable
P 9,000
72,000
27,000
Stockholders equity
Capital stock
Retained earnings (deficit)
______
P108,000
Estimated Deficiency
180,000
(120,000)
P 60,000
P(30,000)
P210,000
(156,000)
P 54,000
P 9,000
72,000
27,000
P108,000
P87,000
4,500
P91,500
Unsecured priority
Administrative expenses
Wages payable
P24,000
45,000
69,000
Unsecured nonpriority
Accounts payable (P72,000 0.50
Rent payable (P27,000 0.50)
Total payments
P36,000
13,500
49,500
P210,000
Problem III
Realizable value of all assets (P635,000 + P300,000 + P340,000)P1,275,000
Allocated to:
(316,000)
(300,000)
(100,000)
P559,000
44.2%
P635,000
300,000
340,000
P1,275,000
P 35,000
110,000
P145,000
P 20,000
6,000
8,000
P 34,000
P111,000
Unsecured Liabilities
Notes Payable (in excess of value of security) .................
Accounts Payable .............................................................
Bonds Payable ..................................................................
Total .........................................................................
P 30,000
85,000
70,000
P185,000
.........................................................................
P 90,000
18,000
P108,000
P30,000
15,000
39,000
10,000
P94,000
(10,000)
P84,000
Unsecured Liabilities:
Accounts payable..............................................................
Bonds payable (less secured interest in
building: P300,000 P180,000)...................................
Unsecured liabilities....................................................
P90,000
120,000
P210,000
P10,000
P36,000
P110,000
P228,000
Problem VI
Class of Creditors
Fully secured liabilities
Partially secured liabilities
Unsecured liabilities with priority
Unsecured liabilities without priority
Total
Creditors
Claims
183,600
54,600
30,810
182,500
Total
Amounts
Expected to
be
Recovered
183,600
51,720
30,810
116,800
% of Total
Claims
Expected to
be
Recovered
100.0
94.7
100.0
64.0
Problem VII
1.
P910,000
P150,000
320,000
P 10,000
20,000
470,000
P440,000
30,000
3.
P410,000
P380,000
260,000
P640,000
P380,000
64.1%
P243,580
150,000
P393,580
WILBUR CORPORATION
STATEMENT OF AFFAIRS
DECEMBER 31, 2008
Assets
Estimated
Current
Values
Book Value
P 40,000
50,000
110,000
20,000
35,000
4,000
35,000
55,000
Estimated
Amount
Available to
Unsecured
Claims
Estimated
Gain
(Loss) on
Realizatio
n
P 40,000
38,500
P 1,500
P 65,000
100,000
P165,000
(157,500)
P 15,000
(10,000)
7,500
P 16,000
(4,000)
(20,800)
P 32,000
(60,000)
P 4,000
35,000
50,000
(3,000)
4,000
35,000
50,000
(5,000)
6,000
140,000
48,000
P 543,000
Prepaid insurance
Plant and equipment (net)
Franchises
1,000
60,000
15,000
1,000
60,000
15,000
P 174,000
(43,000)
P 131,000
45,000
P 176,000
(5,000)
(80,000)
(33,000)
(P
125,000)
Assets to be realized
Old Receivebles, net
50,000
Marketable Securities
20,000
Old Inventory
72,000
Depreciable Assets, net
120,000
Smith Company
Statement of Realization and Liquidation
Assets
Assets Realized
P
Old Receivbles
28,000
New Receivbles
65,000
Marketable Securities
15,000
Sales of Inventory
100,000
Assets Acquired
New Receivables
100,000
Supplementary Charges
Old Current Payables
31,000
Supplementary Items
Supplementary Credits
P
Net Loss
7,000
Liabilities
Liabilities to be Liquidated
Liabilities Liquidated
Old Current Payables
31,000
P
65,000
Liabilities Incurred
P
_____
___
P43
3,000
P
433,000
Problem X
Mallory Corporation
Statement of Realization and Liquidation
For the Three Months Ended July 31, 20X5
Assets
Assets
Beginning balances assigned 5/1/X5
Cash Receipts:
Collection of Accounts Receivable
Sale of inventory
Sale of land and building
Sale of machinery
Cash Disbursements:
Payment of salaries payable
Partial payment of accounts pay.
Partial payment of bank loan
Ending balance
Assets
Beginning balances assigned
5/1/X5
Cash Receipts:
Collection of Accounts
Receivable
Sale of inventory
Sale of land and building
Sale of machinery
Cash Disbursements:
Payment of salaries payable
Partial payment of accounts
payPartial payment of bank loan
Ending balance
Cash
P 4,000
Non-Cash
P720,000
60,000
170,000
20,000
70,000
Fully
Secured
P240,00
0
(240,00
0)
________
P
0 P
(70,000)
(200,000)
(340,000)
(100,000)
(60,000)
(170,000)
(70,000)
P24,000
P10,000
Liabilities
Unsecured
Partially
With
Without
Owner's
Secured Priority Priority
Equity
P270,00 P94,000
P 0 P120,000
0
(10,000)
(30,000)
(80,000)
(30,000)
(60,000
)
(180,00
10,000
0) ________
(90,000)
20,000
P P34,000 P30,000
0
________
P
(30,000)
8. d
9. No requirement
13. a
Net Free Assets:
(P700,000 P300,000) + P70,000 + P230,000 = P700,000 P140,000 = P560,000
Total Unsecured Creditors without priority:
(P400,000 P300,000) + P600,000 = P700,000
14. c
P 1,375,000
750,000
1,875,000
1,700,000
3,125,000
P 8,825,000
P 9,250,000
15. c
Total Liabilities (refer to Liabilities not liquidatedNo. 14) P1,700,000
+: Stockholders Equity (P1,500,000 P500,000) 1,000,000
Total LSHE = Total Assets P 2,700,000
-: Noncash assets (refer to Assets not realized-No. 14). 1,375,000
Cash balance, ending P1,325,000
Theories
1
.
False
6.
False
11
.
False
16
.
21
.
26.
31
.
2
.
3
.
4
.
5
.
False
7.
True
False
9.
True
False
10
,
True
32
.
33
.
34
.
35
.
True
27
.
28
.
29
.
30
.
True
22
.
23
.
24
.
25
.
8.
17
.
18
.
19
.
20
.
False
12
.
13
.
14
.
15
,
36.
41.
46.
37
.
38
.
39
.
40
.
42
.
43
.
44
.
45
.
47
.
48
.
49
.
50
.
b
c
d
b
d
c
c
a
d
a
a
c
b
b
b
b
d
b
b
c
b
a
c
c