QUESTION 1

QUESTION 2

PLEASE PRESENT IN GOOD ACCOUNTING FORM

The accountant of DD Corp. prepared a statement of affairs. Assets which there are no claims or liens are expected to produce P700,000. Unsecured claims of all classes totaled to P1,050,000. The following data are claims deemed outstanding: Accrued salaries P15,000; Unrecorded note for P10,000 on which P600 of interest has accrued held by Norway Corp; A note for P30,000 secured by P40,000 receivable, estimated to be 60% collectible held by 1 Co., A P15,000 note, on which P300 interest has accrued held by Jay Real Estate Co with a book value of P10,000 and a market value of P18,000 is pledged to guarantee payment of principal and interest; Unpaid income taxes of P35,000. Compute for the amount realized by partially secured creditors The assets and capital of QRS Partnership at the end of its fiscal year on October 31, 2021 are as follows: ASSETS LIABILITIES AND CAPITAL Cash 30,000 Liabilities 100,000 Receivable, net 40,000 Loan from 20,000 Merchandise Inventory 80,000 Q, Capital (30%) 90,000 Non-current Asset 140,000 R, Capital (50%) 60,000 Loan to R 10,000 S, Capital (20%) 30,000 The partners decide to liquidated the partnership. They estimate that the noncash assets, other than the loan to R, can be converted into P200,000 cash over the two months period ending December 31, 2021. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Qif P150,000 is available for first distribution