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Sayap company signed a note payable to its bank for

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39.Sayap Company signed a note payable to its bank for P2,000,000. Accrued interest on the note onFebruary 29, 2008 amounts to P50,000. The note is secured by inventory with a book value of P2,300,000.The inventory is sold for P1,600,000 and unsecured creditors receive 30% of their claims. What amountshould the bank receive in settlement of the note and interest.a.P2,050,000b.P2,000,000c.PI, 705,000d.PI,600,000
40.The First Family Bank loaned P4,000,000 to Belle Corporation. The loan is secured by a land with a bookvalue and fair market value of P5,000,000 and P3,000,000, respectively. What amount will the bankreceived if unsecured creditors received 25% of their claims?a.PI,000,000
Questions 41 & 42 are based on the following:41.Zero Na Corp. has been undergoing liquidation since January 1. As of March 31, its condensed statementof realization and liquidation is presented below:Assets:Assets to be realizedP 1,375,000Assets acquired750,000Assets realized1,200,000Assets not realized1,375,000Liabilities:Liabilities liquidatedP 1,875,000Liabilities not liquidated1,700,000Liabilities to be liquidated2,250,000Liabilities assumed1,625,000Revenues and Expenses:Supplementary chargesP 3,125,000Supplementary credits2,800,000The net gain (loss) for the three-month period ending March 31 is:
42.Using the same information on No. 41, compute the ending cash balance of cash account assuming thatcommon stock and deficits are P1,500,000 and P500,000, respectively.
Items 43 through 55 are based on the following data:The Palubog Company has decided to seek liquidation after previous restructuring and quasi-reorganization attempts failed. The company has the following condensed balance sheet as of May 1,2011:
AssetsLiabilities and Stockholders' EquityCashP 12,000Accrued payrollP40,000Receivables (net)280,000Loans from officer50,000Inventory70,000Accounts payable60,000Prepaid expenses1,000Equipment loan payable360,000Plant assets300,000Business loan payable180,000Goodwill39,000Common stock60,000_______Deficit(48,000)TotalP702,000TotalP702,000The equipment loan payable is secured by specific plant assets having a book value of P300,000 and arealizable value of P350,000. Of the accounts payable, P40,000 is secured by inventory which has a cost ofP40,000 and a liquidation value of P44,000. The balance of the inventory has a realizable value of P32,000.Receivables with a book value and market value of P100,000 and P80,000 respectively have been pledged ascollateral on the business loan payable. The balance of the receivables have a realizable value of P150,000.43.Assuming trustee expenses of P12,000 in addition to recorded liabilities, which of the remaining unsecuredcreditors has the next highest order of priority.a.Accrued payrollc. Loan from officerb.Equipment loan payabled. Business loan payable
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Term
Spring
Professor
Mr. Salvador
Tags
Balance Sheet, Bankruptcy, Generally Accepted Accounting Principles

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