HHH Company was unable to pay its current obligations as they become due. SM Company was...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
HHH Company was unable to pay its current obligations as they become due. SM Company was appointed as trustee on January 2, 2020. Creditors and stockholders agree that an attempt should be made to rehabilitate the business assets, pay off the creditors and distribute remaining funds to the stockholders. The trustee is authorized to take over all the assets of HHH. A statement of financial position was given to the trustee and the following business transactions were selected. March 31-Sales on account, P1,050,000 April 8- Collections of notes receivable, P75,000 May 15- Payment of accounts payable old-P150,000 Determine the following: a. What is the entry for the March 31 transaction in the books of HHH and SM? b. What is the entry for the April 8 transaction in the books of HHH and SM? c. What is the entry for the May 15 transaction in the books of HHH and SM? The following data were taken from the statement of realization and liquidation of III Company for the quarter ended September 30, 2020: 750,000 Assets to be realized Assets not realized Liabilities not liquidated Liabilities assumed ? Liabilities liquidated Assets realized Assets acquired Liabilities to be liquidated Determine the following: a. Assets not realized b. Beginning balance of cash c. Ending balance of cash The beginning balance of Share Capital and Retained Earnings are P510,000 and P148,000 respectively. The net income for the period is P224,500. Assets to be realized Assets not realized 875,000 880,500 Supplementary charges 1,500,000 Supplementary credits Assets realized Assets acquired Liabilities to be liquidated 0. A statement of realization and liquidation has been prepared for JJJ Company. The totals are given below: 1,825,000 750,000 Determine the following: a. Beginning balance of cash b. Ending balance of cash. 1,770,000 620,500 845,000 65,000 Liabilities not liquidated 80,000 Liabilities assumed 30,000 Liabilities liquidated 48,000 Supplementary charges 95,000 Supplementary credits 28,500 32,000 58,000 120,000 110,000 Retained Earnings increased to P25,000. The beginning balance of Share Capital and Retained Earnings are P120,000 and (P35,000) respectively. HHH Company was unable to pay its current obligations as they become due. SM Company was appointed as trustee on January 2, 2020. Creditors and stockholders agree that an attempt should be made to rehabilitate the business assets, pay off the creditors and distribute remaining funds to the stockholders. The trustee is authorized to take over all the assets of HHH. A statement of financial position was given to the trustee and the following business transactions were selected. March 31-Sales on account, P1,050,000 April 8- Collections of notes receivable, P75,000 May 15- Payment of accounts payable old-P150,000 Determine the following: a. What is the entry for the March 31 transaction in the books of HHH and SM? b. What is the entry for the April 8 transaction in the books of HHH and SM? c. What is the entry for the May 15 transaction in the books of HHH and SM? The following data were taken from the statement of realization and liquidation of III Company for the quarter ended September 30, 2020: 750,000 Assets to be realized Assets not realized Liabilities not liquidated Liabilities assumed ? Liabilities liquidated Assets realized Assets acquired Liabilities to be liquidated Determine the following: a. Assets not realized b. Beginning balance of cash c. Ending balance of cash The beginning balance of Share Capital and Retained Earnings are P510,000 and P148,000 respectively. The net income for the period is P224,500. Assets to be realized Assets not realized 875,000 880,500 Supplementary charges 1,500,000 Supplementary credits Assets realized Assets acquired Liabilities to be liquidated 0. A statement of realization and liquidation has been prepared for JJJ Company. The totals are given below: 1,825,000 750,000 Determine the following: a. Beginning balance of cash b. Ending balance of cash. 1,770,000 620,500 845,000 65,000 Liabilities not liquidated 80,000 Liabilities assumed 30,000 Liabilities liquidated 48,000 Supplementary charges 95,000 Supplementary credits 28,500 32,000 58,000 120,000 110,000 Retained Earnings increased to P25,000. The beginning balance of Share Capital and Retained Earnings are P120,000 and (P35,000) respectively.
Expert Answer:
Answer rating: 100% (QA)
For Question 1 HHH Company a March 31 Transaction In the books of HHH Debit Accounts Receivable P105... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The North Face, Inc. (North Face) is an American outdoor product company specializing in outerwear, fleece, coats, shirts, footwear, and equipment such as backpacks, tents, and sleeping bags. North...
-
Governmental Funds Statement of Revenues Expenditures and Changes in Fund Balance. You have recently started working as the controller for a small county. The county is preparing its financial...
-
A manufacturer is studying the effects of cooking temperature, cooking time, and type of cooking oil for making potato chips. Three different temperatures, 4 different cooking times, and 3 different...
-
Newcastle Ltd was incorporated on 1 July 2025. On 1 August, it was decided to issue 600 000 ordinary shares on the following terms. To the end of August, applications for 700 000 shares had been...
-
Taylor Company reports free cash flow of \(\$ 15,000\), total cash of \(\$ 18,000\), net income of \(\$ 50,000\), current assets of \(\$ 90,000\), average current liabilities of \(\$ 38,400\), and...
-
Williams and DiMaggio, architects, have been using a simplified costing system in which all professional labor costs are included in a single direct cost category, professional labor; and all...
-
At the end of 2021, ACME Corporation faced increasing competition leading to a build up of inventory and declining profitability and liquidity. In an effort to generate more revenue and improve the...
-
Required - Please submit the following two documents: 1. Using Excel, submit the following: i. ii. Calculate Rashmika's minimum net income for tax purposes in accordance with the ordering provisions...
-
[20 pt.] Knowing that the normal stress acting in section AB (whose section is 40 cm. x 40 cm.) is 48 kPa, calculate the corresponding stress in section BC (whose section is 30 cm. x 30 cm.). 30cm 40...
-
If you plan to spend the same amount of money (inflation adjusted) during retirement, what should be the size of your investment portfolio assuming you earn a 5% return and a 7% return. Assume that...
-
Marketing Objectives for Australian Bay Seafoods marketing to Thailand. What market share do you aim to achieve? Are you aiming for long/short term marketing, large/small scale marketing? What are...
-
If the stock prices of Ford Motors and General Motors both fell during the recession, what type of covariance did they exhibit?
-
Steam is used to heat a liquid in a shell-in-tube heat exchanger. The steam enters at T = 272 deg C and a density of 33.333 kg/m^3. Determine the pressure, quality (incoming and outgoing), and amount...
-
How does the concept of inclusive fitness, as formulated within the framework of kin selection and altruism, explain the evolution of cooperative behaviors, social hierarchies, and reproductive...
-
Record closing of credit balances in temporary accounts. Record closing of debit balances in temporary accounts. Record closing of income summary account. Record closing of dividends account....
-
Can partitioned join be used for r r.A s? Explain your answer
-
Suppose, after graduating, that you accept a job as a manager for a retail store that sells tablets and laptop computers, along with cases and bags for them. The inventory is purchased from other...
-
Daniel and Emily have received a sizable amount of cash from the sale of their shares of ABC. As a result, they are considering where they should invest this money. They recognize how profitable ABC...
-
Stratus Ltd. sells merchandise on April 1, 2017, to Red River Enterprises in return for a 12-month, 9%, $10,000 note, with interest due at maturity. The company uses a perpetual inventory system and...
-
Describe how monopoly regulation influences output, price, economic profit, and efficiency.
-
Describe and explain the inefficiencies of monopoly.
-
Why is pure monopoly rare?
Study smarter with the SolutionInn App