question no. 1

2. The following information are related to JVCD Corporation which is undergoing liquidation: a. A bank loan amounting to P455,000 is secured by inventories with book value of P525,000 and net realizable value of P350,000. b. Of the P1,120,000 accounts payable, P343,000 is secured by accounts receivable amounting to P413,000 which is 10% uncollectible. c. Property and equipment costing to P875,000 and which is depreciated by 20% has a net realizable value of P588,000. d. Other unrecorded liabilities are accrued interest payable on bank loan, P45,500; salaries payable, P112,000; taxes payable, P63,000; and trustee's fee, P52,500. e. Cash available before liquidation amounts to P87,500. Compute for the estimated deficiency to unsecured creditors and expected recovery percentage of unsecured creditors.Practical Accounting II Corporate Liquidation 1. The Pollen 4U Corporation is undergoing liquidation and has the following condensed Statement of Financial Position as of June 1, 2011: Assets Liabilities and Equity Cash 399,700 Salaries Payable 175,000 Receivables (net) 1,192,800 Accounts Payable 379,750 Merchandise 280,000 Bonds Payable 1,400,000 Prepaid Expenses 8,750 Bank Loan Payable 770,000 Building (net) 1,207,500 Note Payable 280,000 Goodwill 192,500 Ordinary Shares 420,000 Deficit (143,500) Total 3,281,250 3,281,250 The bonds payable is secured by the building having book value of P1,207,500 and a realizable value of P1,260,000. Of the accounts payable, P210,000 is secured by 25% of the receivable which is estimated to be 80% collectible. The remainder in the book value of the receivables which has a realizable value of P822,500 is used to secure the bank loan payable. The merchandise has a realizable value of P185,500. In addition to the recorded liabilities are accrued interest on bonds payable amounting to P14,000 and trustees expenses amounting to P8,750 and taxes P10,500. Compute for the settlement to fully secured creditors, partially secured creditors and unsecured creditors without priority. Fully Secured Partially Secured Without Priority A. 980,000 1,105,464 472,014 B. 980,000 1,380,398 351,614 1,008,560 1,380,398 472,014 1,008,560 1,105,464 351,614