Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nissan Corporation is undergoing liquidation. On January 1, 2020 its Statement of Financial Position showed the following accounts: ASSETS LIABILITIES AND EQUITY Cash P 150,000

Nissan Corporation is undergoing liquidation. On January 1, 2020 its Statement of Financial Position showed the following accounts:

ASSETS LIABILITIES AND EQUITY

Cash P 150,000 Salaries Payable P 85,000

Accounts Receivables-net 290,600 Accounts Payable 120,700

Inventory 50,000 Mortgages Payable 428,000

Prepaid Expenses 10,400 Loan Payable 130,000

Building 380,000 Notes Payable 84,300

Goodwill 80,000 Ordinary Shares 170,000

Deficit (57,000)

TOTAL P 961,000 TOTAL P 961,000

The mortgage payable is secured by the Building having a realizable value of P400,000. Accounts Payable amounting to P75,000 is secured by receivables amounting to P90,600 (P9,900 of which is uncollectible). The balance of receivables which has a realizable value of P187,500 is used to secure the loan payable. Inventory has a realizable value of P41,200. In addition to recorded liabilities are: accrued interest on mortgage payable amounting to P4,280, liquidation expenses amounting P11,300 and taxes amounting to P5,600. Prepaid expenses and goodwill have no realizable values.

(NOTE: Use 2 decimal places for estimated recovery percentage ex. 88.89%)

Group of answer choices

430,334

420,334

430,360

390,334

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

1st Edition

0130193720, 978-0130193728

More Books

Students also viewed these Accounting questions

Question

Solve. x 4 + 5x 2 - 6 = 0

Answered: 1 week ago

Question

Contrast Adlers and Freuds approaches to motivation.

Answered: 1 week ago

Question

What was the first HR error to be made?

Answered: 1 week ago