Beruflich Dokumente
Kultur Dokumente
Problem I
1. Statement of Affairs - Formal
MINER COMPANY
Statement of Affairs
May 31, 2012
Book Value
P 50,000
1,200
119,000
13,200
6,000
61,000
60,000
1,100
8,500
Assets
Assets Pledged with Fully Secured Creditors:
Notes Receivable
P39,800
Accrued Interest Rec.
1,000
P 40,800
Notes Payable
Accrued Interest Pay.
40,000
800
Building
Note Payable
Accrued Interest Pay.
20,000
800
40,800
75,000
20,800
Free Assets
Cash
Accounts Receivable
Inventory
Prepaid Insurance
Goodwill
Total Net Realizable Value
Liabilities having Priority Wages
Taxes
Net Free Assets
6,000
50,000
30,000
400
0
140,600
6,000
2,400
P 6,000
2,400
60,000
1,600
10,000
P 54,200
Equities
Liabilities Having Priority:
Accrued Wages
Taxes Payable
Fully Secured Creditors:
Notes Payable
Accrued Interest Payable
Partially Secured Creditors:
Note Payable
Equipment
8,400
132,200
53,600
P 185,800
P 320,000
Book
Value
Realizable
Value
Unsecured
P 6,000
2,400
P 8,400
60,000
1,600
61,600
10,000
4,200
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
Book Value
P165,000
3,000
72,000
60,000
______
P300,000
Assets
Pledged with partially secured creditors
Equipment-net
Less: Note payable and accrued interest
Unsecured amount (See below)
Free Assets
Cash
Accounts receivable-net
Inventories
Total net realizable value
Less: Priority liabilities wages payable
Total available for unsecured creditors
Estimated deficiency to unsecured creditors
Realizable Value
P87,000
(96,000)
(9,000)
3,000
48,000
72,000
123,000
(45,000)
78,000
30,000
P108,000
Deficiency
Account
(Loss/Gain)
(78,000)
(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)
P 45,000
P 96,000
(87,000)
Liabilities
P 9,000
Unsecured creditors
Accounts payable
Rent payable
72,000
27,000
Stockholders equity
Capital stock
Retained earnings (deficit)
180,000
(120,000)
P 60,000
P(30,000)
______
P108,000
Estimated Deficiency
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
Problem III
Realizable value of all assets (P635,000 + P300,000 + P340,000)
49,500
P210,000
P1,275,000
Allocated to:
Fully secured creditors
Partially secured creditors
Unsecured creditors with priority
Remainder available to general unsecured creditors
Payment rate to general unsecured creditors
(Including balance due to partially secured creditors)
P559,000 / (P1,165,000 + (P400,000 - P300,000))
(316,000)
(300,000)
(100,000)
P559,000
44.2%
P635,000
300,000
340,000
P1,275,000
P316,000
344,200
100,000
514,800*
P1,275,000
*Rounded P130
Problem IV
Free Assets:
Current Assets .................................................................................
Buildings and Equipment ..............................................................
Total ........................................................................................
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
Problem V
Free Assets:
Cash
........................................................................................
Receivables (30 percent collectible) ..........................................
Inventory ........................................................................................
Land (value in excess of secured note:
P120,000 P110,000) .................................................................
Total ........................................................................................
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
Problem VII
1. Total estimated proceeds
Less asset proceeds claimed by secured
creditors:
Notes payable and interest (from
proceeds of receivables and inventory)
Mortgage payable and interest (from
proceeds of land and building)
Total available to unsecured claimants.
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
P910,000
P150,000
320,000
470,000
P440,000
3.
P 10,000
20,000
30,000
P410,000
P380,000
260,000
P640,000
P380,000
64.1%
P243,580
150,000
P393,580
Book Value
P 40,000
50,000
110,000
20,000
35,000
Estimated
Amount
Available to
Unsecured
Claims
Estimated
Gain
(Loss) on
Realization
P 40,000
38,500
P 1,500
P 65,000
100,000
P165,000
(157,500)
P 16,000
P 15,000
(10,000)
7,500
(4,000)
(20,800)
P 32,000
(60,000)
(3,000)
4,000
35,000
55,000
6,000
140,000
48,000
P 4,000
35,000
50,000
1,000
60,000
15,000
4,000
35,000
50,000
1,000
60,000
15,000
P 174,000
(43,000)
P 131,000
45,000
P 176,000
P 543,000
(5,000)
(5,000)
(80,000)
(33,000)
(P 125,000)
Assets to be realized
Old Receivebles, net
Marketable Securities
Old Inventory
Depreciable Assets, net
Smith Company
Statement of Realization and Liquidation
Assets
Assets Realized
P 50,000
20,000
72,000
120,000
Assets Acquired
New Receivables
Old Receivbles
New Receivbles
Marketable Securities
Sales of Inventory
Assets Not Realized
100,000
Supplementary Charges
Supplementary Items
Supplementary Credits
P 31,000
Liabilities Liquidated
Old Current Payables
Net Loss
22,000
35,000
96,000
P 7,000
Liabilities
Liabilities to be Liquidated
P 31,000
P 28,000
65,000
15,000
100,000
P 65,000
Liabilities Incurred
P 34,000
P433,000
________
P 433,000
Problem X
Mallory Corporation
Statement of Realization and Liquidation
For the Three Months Ended July 31, 20x5
Assets
Cash
Non-Cash
P 4,000
P720,000
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/X5Receipts:
Cash
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
Fully
Secured
P240,000
Partially
Secured
P270,000
60,000
170,000
20,000
70,000
(70,000)
(200,000)
(340,000)
(100,000)
(60,000)
(170,000)
(70,000)
P24,000
P10,000
Liabilities
Unsecured
With
Without
Priority
Priority
P94,000
P0
(10,000)
(30,000)
(80,000)
(30,000)
(240,000)
(60,000)
(180,000)
________
(90,000) ________
P
0 P
0 P34,000
P
0
Owner's
Equity
P120,000
10,000
20,000
P30,000
________
P (30,000)
9. d
10. c P60,000 + [(P120,000 + P6,000) (P30,000 + P35,000) = P121,000
11. b - P20,000 + P80,000 + [P170,000 (P150,000 + P7,000)] = P113,000 (P10,000 + P10,000)
= P93,000
12. c P93,000/P121,000 = 77% rounded.
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 - Pension P10,000 + Salaries P35,000 (= P10,600 + P10,950 + P10,950 + P2,500) + Taxes P80,000
+ Liq. expenses P40,000 = P165,000.
15. c
Assets to be Realized.
Assets Acquired..
Liabilities Liquidated.
Liabilities Not Liquidated.
Supplementary charges/
debits
P 1,375,000
750,000
1,875,000
1,700,000
3,125,000
P 8,825,000
P 9,250,000
Net Gain.. P 425,000
16. No requirement
17. 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, endingP1,325,000
18. P440,000
Total Free Assets:
Fully secured:
Land and building: P650,000 (P300,000 + P20,000) = P 330,000
Free assets:
Cash
10,000
Equipment
100,000
Or,
Total estimated proceeds
Less asset proceeds claimed by secured
creditors:
P440,000
P910,000
P150,000
320,000
19. P410,000
Total available to unsecured claimants/total free
Less distributions to unsecured claims
with priority:
Wages payable
Taxes payable
Amount available for unsecured
claims/net free assets
470,000
P440,000
P440,000
P 10,000
20,000
30,000
P410,000
P380,000
260,000
P640,000
21. 64.1%
Dividend to unsecured creditors
P410,000 P640,000 = 64.1%
22. P320,000 = P300,000 + P20,000
23. P393,580
Unsecured portion of notes payable and
interest
Dividend on unsecured amount
Amount received on unsecured portion
Proceeds from receivables and inventory
Total Received
P380,000
64.1%
P243,580
150,000
P393,580
Estimated Amt
Avail for
Unsecured
Creditors
Estimated
Gain or
(Loss)on
Liquidation
Book
Value Assets
Assets pledged with fully secured
creditors:
98,500
Land and Bldg
92,800
5,800
Investment in Calandir
15,000
Total
107,800
Assets pledged with partially
secured creditors:
41,000
Inventory
20,000
43,000
Equipment
8,000
Free Assets:
1,850
Cash
1,850
21,200
Accounts Rec
17,000
15,000
Note Rec
15,000
Estimated Amount Avail for unsecured creditors
with and without priority
Less unsecured creditors with priority
Estimated amounts for unsecured creditors
without priority (Net Free Assets):
Net Realizable Amount Avail
_______
Deficiency
_______
226,350
169,650
Book Liabilities
Value and Owners Equity
Fully Secured Creditors:
600
Accrued Mtg Interest
70,000
Mortgage Payable
375
Accrued N/P Interest
10,000
Note Payable
Total
Partially Secured
Creditors:
50,000
Accounts Payable
Unsecured Creditors with
Priority:
3,775
Accrued Payroll
Unsecured creditors without
Priority:
40,625
Accounts Payable
10,000
Other Accrued Liabilities
185,375
Totals
40,975
Owner Equity
226,350
31.
32.
33.
34.
35.
36.
37.
38.
Estimated
Secured
Amount
22,200
4,625
(5,700)
9,200
(21,000)
(35,000)
1,850
17,000
15,000
0
(4,200)
0
60,675
(3,775)
56,900
15,725
72,625
_______
(56,700)
600
70,000
375
10,000
80,975
28,000
22,000
3,775
_______
108,975
3,775
40,625
10,000
72,625
Owners'
Equity
40,975
(5,800)
(15,000)
(43,000)
10,200
0
(36,000)
(41,000)
(19,000)
---------119,700
(10,375)
--------70,600
(50,000)
0
------3,775
21,000
71,625
---------(3,825)
Book
Value
57,000
174,000
6,000
900
90,000
Estimated
Net
Realizable
Assets
Value
Assets pledged with fully secured creditors:
Accounts receivable (net)
45,000
Land, plant and equipment (net)
150,000
Total
195,000
Free assets:
Notes receivable
6,000
Accrued interest receivable
900
Inventories (90,000 x 60%)
54,000
Estimated
amount
available for
unsecured creditors with and
without priority
Less unsecured creditors with priority
Estimated amounts for unsecured
creditors without priority:
Estimated
Amount
Available for
Unsecured
Creditor
Estimated
Gain or
(Loss) on
Liquidation
12,600
77,400
(12,000)
(24,000)
6,000
900
54,000
0
0
(36,000)
150,900
(26,900)
124,000
26,000
Totals
255,900
Estimated
Secured
Amount
Book
Value
3,600
69,000
2,400
30,000
24,900
0
0
18,000
6,000
126,000
279,900
Totals
48,000 Owners' equity--see Note A
327,900
Note A: Includes the effect of the P2,000 professional fee.
150,000
(72,000)
Estimated Unsecured
Amount
With Priority
Without
Priority
3,600
69,000
2,400
30,000
105,000
24,900
2,000
--------
--------
0
18,000
6,000
126,000
105,000
26,900
150,000
.40
.15
15. P78,000
Cash
Excess of pledged with secured liabilities
(P117,000 P104,000)
16. P52,000
Free assets after of liabilities with priority:
Total free assets
Less: Liabilities with priority
17. P260,000
Unsecured creditors:
Excess of partially secured liabilities over
pledged assets (P195,000 P169,000)
Accounts payable
P 65,000
13,000
P 78,000
P 78,000
26,000
P 52,000
26,000
234,000
P 260,000
18. P174,200
Payment on bond:
Value of pledged assets
20%* of remaining P26,000
P 169,000
5,200
P 174,200
P390,000
65,000
P455,000
( 208,000)
P247,000
20. P32,000
Cash
Mortgage payable, paid in full
120,000
60,000 )
60,000
30,000 )
30,000
22,000 )
8,000
10,000
30,000
40,000
32,000
21. P15,400
Mortgage note receivable
Less: Portion secured by equipment
Unsecured portion
35,000
7,000
28,000
7,000
8,400
15,400
22.
Mortgage note receivable
Less: Portion secured by marketable securities
Unsecured portion
Estimated recovery on secured portion
Estimated recovery on unsecured portion
(20,000 x P.25) =
80,000
60,000
20,000
60,000
5,000
65,000
P700,000
370,000
P330,000
300,000
P 30,000
P380,000
260,000
P640,000
P380,000
x 64.1%
P243,580
150,000
P393,580
5.
6.
7.
8.
9.
10.
11.
12.
13.
44.
45.
46.
47.
48.
d.
employee benefit plans
e.
deposits by individuals
f.
taxes
infrequent
two-thirds, more than one-half
fraudulent, preferential
realization and liquidation
False
False
False
True
False
a
c
c
a
b
14.
15.
16.
17.
18.
False
True
True
True
True
c
50. d
51. a
52. d
53. b
49.
19.
20.
21.
22.
23.
54.
55.
56.
57.
58.
False
False
c
a
a
d
c
d
b
a
24.
25.
26.
27.
28.
c
a
d
c
59. a
60. c
29.
30.
31.
32.
33.
b
b
b
a
34.
35.
36.
37.
38.
b
d
b
c
39.
40.
41.
42.
43.
b
c
b
a