Hi tutor may I ask for the detailed solution and explanation for this? Thank you and these are the details:

SUGAR Corp. has the following balances on July 1, 2017 before realization of assets and liquidation of the company:

Cash P5,500 Accounts payable P59,500 Accounts receivable 35,000 Wages payable 25,000 Inventories 60,000 Tax payable 35,000 Notes receivable 78,000 Notes payable 65,000 Equipment 256,000 Mortgage payable 175,000 Capital stock 120,000

Deficit (45,000)

Total P434,500 Total P434,500

Assets were realized during the month as follows:

a. Existing beginning balance accounts receivable were collected for 7/8 only of the recorded amount, the remaining was worthless.

b. Half of the inventories were sold for P45,000 cash while the remaining were sold on credit for P10,500. c. The equipment was sold for P225,000 cash.

Additional information:

Interest were accrued during the month as follows:

a. Notes receivable P 1,500

b. Notes payable 5,500

c. Mortgage payable 10,500

Notes payable and mortgage payable, together with their respective interest, were paid as of the end of the month. Furthermore, administrative expenses of P 13,800 were also paid.

How much was the net gain or loss on the realization and liquidation in July?

How much was the Estate Deficit (Equity account) as of the end of the month?

How much was the ending balance of cash?

Thank you very much.