Beruflich Dokumente
Kultur Dokumente
Exercise 14 - 1 Book Value P44,000 33,000 Assets Free assets: Finished goods Work in process: Est. value upon completion Costs to complete: Materials labor and other costs Materials Required to complete WIP Balance, est. to realize Appraised Value P49,000 P70,000 (10,000) (17,000) P10,000 27,000 43,000 37,000 43,000 37,000 (10,000) 3,000
Est. Amount Available
P49,000
40,000
Exercise 14 - 2 When there are mutual debts between a bankrupt and a creditor, one balance is set off against the other and only the difference is recognized for purpose of settlement. Therefore: (1) Under the heading "Unsecured Creditors", the cash in the savings account with AB Bank, P7,000, will be applied against the cash overdraft in the checking account with AB Bank, P9,000, and the overdraft excess of P2,000 will be extended to the "Amount Unsecured" column; Under the heading "Free Assets", the cash overdraft in the checking account with CD Bank, P3,000, will be applied against the cash balance representing sinking fund accumulation with CD Bank, P33,000, and the sinking fund excess of P30,000 will be extended to the "Estimated Amount Available" column.
(2)
Book values of the asset and liability items would be listed in the "Book Value" columns within the sections indicated above, with subtraction items being reported as negative balances in the "Book Value" columns.
Exercise 14 - 3
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Assets Assets pledged with fully secured creditors: (a) Mercury stock (200 shares) Less Claim (see contra) Assets pledged with partly secured creditors: (d) Accounts receivable (deducted contra) Free assets: (a) Mercury stock (200 shares)
(b) Work in process: Est. value upon completion Materials labor (c ) Materials Required to complete WIP Balance, est. to realize
31,000 26,000
31,000 26,000
24,000
Liabilities and Stockholders' Equity Fully secured creditors: Claims (deducted contra) Partly secured creditors: Notes payable Less security: Accounts receivable (see contra)
45,000
P 5,000
Exercise 14 - 4 Cameron Company, Debtor Deficiency Statement Estimated losses on realization of assets:
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Accounts receivable Inventories Prepaid insurance and other prepaid expenses Machinery and equipment Goodwill and patents Additional liabilities: Liquidation costs Contingent liabilities Estimated gross loss Deduct: Estimated gains on realization of assets: Land and buildings Estimated net loss Loss to be borne by owners: Capital stock Less deficit Estimated deficiency to unsecured creditors Exercise 14 - 5 Clippers Company, Debtor Statement of Affairs November 30, 2008 With Priority P 30,000 P 30,000 P200,000
P200,000 31,000
169,000 P 3,400
Liabilities Mortgage payable Notes payable Liabilities with priority Unsecured liabilities Totals
Assets Land and buildings Furniture and equipment Other assets Creditors with priority Totals
With Priority
Assets Available to Creditors Fully Partly Secured Secured P200,000 P 80,000 P200,000 P 80,000
P 30,000
Total unsecured creditors Estimated amount available to unsecured creditors without priority Estimated deficiency to unsecured creditors Estimated amount payable per peso of unsecured liability (P180,000/P230,000) PROBLEMS
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Assets pledged with fully secured creditors: P60,000 Merchandise inventory Less Claim: Note payable and accrued interest (see contra) Assets pledged with partly secured creditors: 36,000 Delivery equipment (deducted contra) 9,700 41,000 87,000 20,000 8,000 50,000 1,000 Free assets: Cash Notes receivable and accrued interest Accounts receivable Merchandise inventory Furniture and fixtures Goodwill Prepaid insurance Estimated amount available Creditors with priority (see contra) Estimated amount available to unsecured creditors without priority (approximately P.71 on the peso) Estimated deficiency to unsecured creditors P312,700
P 42,000 40,400 P 28,000 9,700 26,800 75,000 14,000 9,000 0 0 9,700 26,800 75,000 14,000 9,000 0 0 P136,100 12,800 P123,300 49,900 P173,200 P 1,600
P 18,,000
8,000
Creditors with priority: Estimated liquidation expenses 800 Accrued salaries and wages
P12,000 800
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Total (deducted contra) Fully secured creditors: Notes payable Add Accrued interest on notes payable Total (deducted contra) Partly secured creditors: Notes payable Add Accrued interest on notes payable Total Less security; Delivery equipment (see contra) Unsecured creditors: Notes payable Add accrued interest on notes payable Accounts payable Notes receivable discounted Stockholders' equity: Capital stock Premium on stock Deficit Total unsecured liabilities
P12,800 P40,000 400 P40,400 P30,000 900 P30,900 28,000 P30,000 300
P173,200
Problem 14 1 Req. 2 Broadway Company, Debtor Deficiency Statement January 31, 2008 Estimated losses on realization of assets: Merchandise inventory Delivery equipment Notes receivable and accrued interest Accounts receivable Goodwill P 24,000 8,000 14,200 12,000 50,000
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Prepaid insurance Additional liabilities: Estimated liquidation expenses Notes receivable discounted Estimated gross loss Deduct: Estimated gains on realization of assets: Furniture and fixtures Estimated net loss Loss to be borne by owners: Capital stock Premium on stock Less deficit Estimated deficiency to unsecured creditors
74,300 P 49,900
Problem 14 2 (Req. 2) Crooked Company Deficiency Statement July 1, 2008 Estimated losses on realization of assets: Land and buildings Finished goods Accounts receivable Work in process Materials Patterns, jigs, and tools Machinery and equipment P 20,000 12,000 6,000 20,000 6,000 32,000 54,000
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Prepaid insurance Additional liabilities: Estimated liquidation expenses Accrued wages Estimated gross loss Deduct: Estimated gains on realization of assets: Intangibles Estimated net loss Loss to be borne by owners: Common stock Additional paid-in capital Less Deficit Estimated deficiency to unsecured creditors
P158,000
25,800 P183,800
110,602 P 68,200
P60,000 100,000
Assets pledged with fully secured creditors: Land Buildings Less claim: First mortgage bonds and accrued interest (see contra) Assets pledged with partly secured creditors: Finished goods (deducted contra) Free assets: Cash Accounts receivable
P20,000
6,000 6,000
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Finished goods Work in process: Est. value upon completion Less cost to complete Materials Patterns, jigs, and tools Machinery and equipment Intangibles Prepaid insurance
36,000 50,000 28,000 8,000 16,000 5,000 0 P241,100 33,500 _______ P207,600 68,200 P275,800
Estimated amount available Creditors with priority (see contra) Estimated amount available to unsecured creditors without priority (approximately P0.75 on the peso) _______ Estimated deficiency to unsecured creditors P553,102
Creditors with priority: Estimated liquidation expenses Accrued wages Total (deducted contra) Fully secured creditors: First mortgage bonds Add Accrued interest on mortgage bonds Total (deducted contra) Partly secured creditors: Notes payable Add Accrued interest on notes payable
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Less security: Finished goods (see contra) Unsecured creditors: Notes payable Accrued interest on notes Accounts payable Stockholders" equity: Common stock Additional paid-in capital Deficit
_______ P275,800
Problem 14 - 2 Crooked Company Summary of Estimated Payments to Creditors July 1, 2008 Percentage Payment Creditors with priority: Estimated liquidation expenses Accrued wages Fully secured creditors: First mortgage bond Accrued interest on bonds Partly secured creditors: Notes payable Accrued interest on notes payable Secured 100% 100 100% 100 --------100% Claim P 25,000 8,500 P120,000 3,000 P 50,000 1,200 P 51,200 36,000 Amount to be Paid P 25,000 8,500 P 33,500 P120,000 3,000 P123,000 --------------P 36,000
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Unsecured Unsecured creditors: Notes payable Accrued interest on notes payable Accounts payable
75 75% 75 75
Note relative to "Summary of Estimated Payments to Creditors": Estimated payment on the unsecured portion of the notes of P11,400, and on the remaining unsecured liabilities, P195,450, results in a total of 206,850, which is p750 less than the estimated amount to become available to unsecured creditors as reported by the statement of affairs. The discrepancy emerges because the estimated amount available as determined by the statement is actually slightly more than the 75% figure and the resulting discrepancy is not objectionable, however, in view of the fact that the data are presented as estimates and a refinement of such data would suggest a degree of accuracy that is not attainable.
Assets pledged with fully secured creditors: Accounts receivable Less claim; Notes payable (see contra) Land Buildings Machinery Total Less claim: Mortg.and accrued int. (see contra) Assets pledged with partly secured creditors: Marketable securities Accrued interest Total (deducted contra) Free assets: Cash
P 80,000 60,000 P 50,000 200,000 150,000 P420,000 264,800 P 38,000 400 P 38,400 P 3,000
40,000
4,000
3,000
1,000
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Accounts receivable Add credit balance (see contra) Finished goods Materials, expected to be realized as finished goods Less cost to complete Goodwill Prepaid expenses
Estimated amount available Creditors with priority Estimated amount available to unsecured creditors w/o priority _______ Estimated deficiency to unsecured creditors P880,000 (2)
Estimated settlement per peso of unsecured liabilities: estimated amount available, P385,200, divided by total unsecured liabilities, P421,600, 91% or P0.91 on the peso.
P 30,000
Creditors with priority: Withheld taxes payable Employer payroll taxes payable 30,000 Accrued wages Estimated liquidation expenses Auditor's fee for liquidation work Total (deducted contra) Fully secured creditors: Notes payable (deducted contra) Mortgages payable Add Accrued interest Total (deducted contra) Partly secured creditors: Notes payable Less security: Marketable securities and accrued interest (see contra)
P 30,000 1,000 30,000 20,000 2,000 P 83,000 P 60,000 P260,000 4,800 P264,800 P 40,000 38,400 P 1,600
60,000 260,000
40,000
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130,000 170,000
Unsecured creditors: Accounts payable Notes payable Accounts receivable (credit balances) Unbilled auditor's fee Estimated liability on pending damage suit
Stockholders' equity: 200,000 Common stock (40,000) Retained earnings (deficit) _______ _ P880,000 Total unsecured liabilities
_______ P421.600
P105,000 130,000
Assets pledged with fully secured creditors: Land Buildings Less claim, mort. payable, and accrued interest (see contra) Assets pledged with partly secured creditors: Investments (deducted contra) Free assets: Cash Accounts receivable Inventories Machinery and equipment (net) Goodwill
P250,000 205,000 55,000 31,500 106,500 145,000 30,000 0 31,500 106,250 145,000 30,000 0 P357,750 35,700 P322,050 40,450 P 45,000
(P 15,000)
Estimated amount available Creditors with priority (see contra) Estimated amount available to unsecured creditors w/o priority _______ Estimated deficiency to unsecured creditors
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P921,500 (2)
P362,500
Estimated amount available, P322,050, divided by total unsecured liabilities, P362,500, equals estimated amount payable on claims, 89% or 89 centavos on the dollar.
P200,000
80,000
Creditors with priority: Estimated liquidation expenses Taxes payable Wages payable Total (deducted contra) Fully secured creditors: Mortgage payable Add Accrued interest Total (deducted contra) Partly secured creditors: Notes payable Add accrued interest Total Less security: Investments (see contra) Unsecured creditors: Accounts payable Stockholders' equity: Common stock Additional paid-in capital Retained earnings (deficit) Total unsecured liabilities Additional paid-in capital is P50,000 instead of P40,000.
P 30,000 4,000 1,700 P 35,700 P200,000 5,000 P205,000 P 80,000 2,500 P 82,500 57,000
P 27,500 335,000
P362,500
CORRECTION:
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2. Mackintosh Company Deficiency Statement November 1, 2008 Estimated losses on realization of assets: Accounts receivable Inventories Investments Machinery and equipment Goodwill Additional liabilities: Estimated liquidation expenses Taxes payable Wages payable Accrued interest on notes payable Accrued interest on mortgage Estimated gross loss Deduct: Estimated gains on realization of assets: Land and buildings Estimated net loss Loss to be borne by owners: Capital stock Additional paid-in capital Less deficit Estimated deficiency to unsecured creditors P 18,750 85,000 35,000 80,000 100,000 P 30,000 4,000 1,700 2,500 5,000
P318,750
306,500 P 40,450
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