[HELP PLEASE]

CASE #1:

Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay its debts. The statement of financial position on that date shows:

ASSETS		LIABILITIES & EQUITY
Cash	5,400		Accounts Payable	105,000
Accounts Receivable	78,700		Notes Payable - PNB	30,000
Note Receivable	37,000		Notes Payable - suppliers	102,500
Inventory	175,700		Accrued wages	3,700
Prepaid Expenses	1,900		Accrued taxes	9,300
Land and Building	122,500		Mortgage Bonds Payable	180,000
Equipment, net	97,600		Common Stock - P100 par	150,000
			Retained earnings	(61,700)
Total Assets	518,800		Total Liabilities & Equity	518,800

Additional Information:

a. Accounts receivable of P32,220 and notes receivable of P25,000 are expected to be collectible. The good notes are pledged to Philippine National Bank.

b. Inventories are expected to bring in P90,200 when sold under bankruptcy conditions.

c. Land and buildings have an appraised value of P190,000. They serve as security on the bonds.

d. The current value of the equipment, net of disposal cost is P18,000.

e. Estimated legal and accounting fees for the liquidation are P2,000.

f. Unrecorded interest on notes payable to supplier amounts to P1,000.

Using the above data, compute the following:

1. Total free assets
2. Net free assets
3. Unsecured liabilities with priority
4. Unsecured liabilities without priority
5. Estimated recovery percentage
6. Net gain (loss) on realization
7. Estimated deficiency
8. Net income (loss) on realization liquidation
9. Amount paid to partially secured creditors
10. Amount paid to unsecured creditors without priority
11. Total estimated payment to creditors
12. To payment to unsecured creditors

CASE #2:

The following data were taken from the statement of realization and liquidation of Bagsak Corporation for the three-month period ended December 31:

Assets to be realized	220,000		liabilities assumed	120,000
assets acquired	240,000		liabilities liquidated	240,000
assets realized	280,000		liabilities not liquidated	300,000
assets not realized	100,000		supplementary credits	340,000
liabilities to be liquidated	360,000		supplementary charges	312,000

Based on the above data, compute the following:

1. Net income (loss) for the period
2. Gain (loss) on realization