I. The following data were taken from the statement of realization and liquidation of Intercontinental Corporation for I.

I. The following data were taken from the statement of realization and liquidation of Intercontinental Corporation for
the quarter ended June 30, 2013 the quarter ended June 30, 2013
Assets to be realized P 515,625 Assets to be realized P 515,625
Supplementary credits 796,875 Supplementary credits 796,875
Liabilities to be liquidated 843,750 Liabilities to be liquidated 843,750
Supplementary charges 731,250 Supplementary charges 731,250
Liabilities liquidated 562,500 Liabilities liquidated 562,500
Assets acquired 562,500 Assets acquired 562,500
Assets realized 656,250 Assets realized 656,250
Liabilities assumed 281,250 Liabilities assumed 281,250
Assets not realized 234,375 Assets not realized 234,375
The ending capital balance of capital stock and retained earnings are P 648,750 and P 178,500, respectively. A net The ending capital balance of capital stock and retained earnings are P 648,750 and P 178,500, respectively. A net
loss of P 226,500 for the period. loss of P 226,500 for the period.
1. How much is the ending balance of cash? _______________. 1. How much is the ending balance of cash? _______________.

II. Twisted Co. is undergoing liquidation. The trustee of Twisted Co. presented the following information: Assets
amounting to P 125,000 are available to unsecured liabilities without priority. Assets amounting to P 110,000
represent assets originally not pledged to any liabilities. Unpaid liabilities are as follows: administrative expenses, P
21,000; taxes, P 18,000; and wages, P 32,000. Accounts payable and notes payable totaled P 180,000. No assets were
pledge on the said liabilities. Payments to fully secured creditors and partially secured creditors amount to P 139,000
and P 144,000 respectively. The expected recovery percentage is 40%.
2. Amount of assets pledge to fully secured creditors _______________.
3. Total Liabilities _______________.
4. The amount to be paid to all creditors _______________.
II. Twisted Co. is undergoing liquidation. The trustee of Twisted Co. presented the following information: Assets
amounting to P 125,000 are available to unsecured liabilities without priority. Assets amounting to P 110,000
represent assets originally not pledged to any liabilities. Unpaid liabilities are as follows: administrative expenses, P
21,000; taxes, P 18,000; and wages, P 32,000. Accounts payable and notes payable totaled P 180,000. No assets were
pledge on the said liabilities. Payments to fully secured creditors and partially secured creditors amount to P 139,000
and P 144,000 respectively. The expected recovery percentage is 40%.
2. Amount of assets pledge to fully secured creditors _______________.
3. Total Liabilities _______________.
4. The amount to be paid to all creditors _______________.

III. The following data are provided by Worldwide Corporation which is undergoing liquidation process:
 Total liabilities amounts to P 692,000. 35% is fully secured by assets amounting to P 270,000 with fair
market value of P 250,000; 40% is partially secured by assets amounting to P 300,000 with realizable value
of P 225,000; and the remaining balance is unsecured.
 Total assets amounts to P 890,000 and has a total fair market value P 695,000.
 Unpaid income taxes amounts to P 35,000. Additional salaries payable and administrative expenses totaled
P 28,000.
 Deficit amounts to P 79,000.
True or False? Support your answer with a solution.
5. Assets available to all unsecured creditors with and without priority is P 227,800.
6. The amount paid to partially secured creditors is P 225,000.
7. The estate deficit amount to P 60,000.
8. The amount paid to all secured creditors is P 695,000.
III. The following data are provided by Worldwide Corporation which is undergoing liquidation process:
 Total liabilities amounts to P 692,000. 35% is fully secured by assets amounting to P 270,000 with fair
market value of P 250,000; 40% is partially secured by assets amounting to P 300,000 with realizable value
of P 225,000; and the remaining balance is unsecured.
 Total assets amounts to P 890,000 and has a total fair market value P 695,000.
 Unpaid income taxes amounts to P 35,000. Additional salaries payable and administrative expenses totaled
P 28,000.
 Deficit amounts to P 79,000.
True or False? Support your answer with a solution.
5. Assets available to all unsecured creditors with and without priority is P 227,800.
6. The amount paid to partially secured creditors is P 225,000.
7. The estate deficit amount to P 60,000.
8. The amount paid to all secured creditors is P 695,000.

IV. A review of the assets and liabilities of Atlantis Corporation in bankruptcy on Nov. 30, 2013, discloses the IV. A review of the assets and liabilities of Atlantis Corporation in bankruptcy on Nov. 30, 2013, discloses the
following: following:
 A mortgage payable of P 77,000, is secured by building valued at P 14,000 more than its book value of P  A mortgage payable of P 77,000, is secured by building valued at P 14,000 more than its book value of P
68,000. 68,000.
 Notes payable of P 39,000 is secured by furniture and equipment with book value of P 46,000 that is  Notes payable of P 39,000 is secured by furniture and equipment with book value of P 46,000 that is
estimated to be 4/5 realizable. estimated to be 4/5 realizable.
 Assets other than those referred to have estimated value of P 25,000, an amount that is P 6,000 above its  Assets other than those referred to have estimated value of P 25,000, an amount that is P 6,000 above its
book value. book value.
 Liabilities other than those referred to total P 31,000, which excluded claims with priority of P 8,000.  Liabilities other than those referred to total P 31,000, which excluded claims with priority of P 8,000.
True or False? Support your answer with a solution. True or False? Support your answer with a solution.
9. Actual recovery percentage is 66.27% 9. Actual recovery percentage is 66.27%
10. Total free assets is P 22,000 10. Total free assets is P 22,000
11. Estimated deficiency to unsecured creditors is P 11,200 11. Estimated deficiency to unsecured creditors is P 11,200
12. Payment to partially secured creditors amount to P 36,800. 12. Payment to partially secured creditors amount to P 36,800.