PROBLEM 1 Miner Company is being forced into bankruptcy. The company's creditors and stockholders have requested an estimate of the results of a liquidation of the company. Miner's trial balance follows: ACCOUNTS DEBIT CREDIT Cash 6,000 Accounts receivable 53,000 Allowance for bad debts 2,000 Notes receivable 50,000 Accrued interest on NR 1,200 Inventory 60,000 Building 182,000 Acc Dep-Build 63,000 Equipment 14,600 Acc Dep - Equip 1,400 Prepaid insurance 1,100 Goodwill 8,500 Accrued Wages -with Priority 6,000 Taxes Payable-with Priority 2,400 Accounts Payable 170,000 Notes Payable 80.000 Accrued Interest Payable 1,600 Common Stock 110,000 Retained Earnings (deficit) 50,000 TOTAL 436,400 436,400 The assets are expected to bring cash on conversion in the following amounts: Accounts Receivable 50,000 Notes receivable including P1,000 accrued interest 40,800 Inventory 30,000 Building 75,000 Equipment 4,200 Prepaid Insurance 400 The notes receivable are pledged as security on a note payable of P40,000 . A note payable of P20,000 is secured by a lien on the building , and the equipment is pledged as security on a note payable of P10,000. One-half of the interest payable relates to the P40,000 note payable; the other half of the interest payable relates to the P20,000 note payable . There is no accrued interest on the other notes payable