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    Sample Probles For Corpo Liquidation Part 2

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    Kezia Guevarra
    The Palubog Co. is seeking liquidation after previous restructuring attempts failed. It has various assets and liabilities on its condensed balance sheet. The key assets include plant assets worth P300,000 and receivables worth P280,000, some of which are pledged as collateral. The equipment loan of P360,000 is fully secured by plant assets. Accounts payable of P40,000 is partially secured by inventory. Zero Na Co. has been undergoing liquidation since January. Its condensed statement shows assets realized and to be realized, liabilities liquidated and to be liquidated, and supplementary expenses and credits for the three month period ending March 31.

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    © All Rights Reserved
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    Sample Probles For Corpo Liquidation Part 2

    Uploaded by

    Kezia Guevarra
    344 views1 page
    The Palubog Co. is seeking liquidation after previous restructuring attempts failed. It has various assets and liabilities on its condensed balance sheet. The key assets include plant assets worth P300,000 and receivables worth P280,000, some of which are pledged as collateral. The equipment loan of P360,000 is fully secured by plant assets. Accounts payable of P40,000 is partially secured by inventory. Zero Na Co. has been undergoing liquidation since January. Its condensed statement shows assets realized and to be realized, liabilities liquidated and to be liquidated, and supplementary expenses and credits for the three month period ending March 31.

    Original Description:

    Corporation Liquidation

    Original Title

    sample-probles-for-Corpo-Liquidation-part-2

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    The Palubog Co. is seeking liquidation after previous restructuring attempts failed. It has various assets and liabilities on its condensed balance sheet. The key assets include plant assets worth P300,000 and receivables worth P280,000, some of which are pledged as collateral. The equipment loan of P360,000 is fully secured by plant assets. Accounts payable of P40,000 is partially secured by inventory. Zero Na Co. has been undergoing liquidation since January. Its condensed statement shows assets realized and to be realized, liabilities liquidated and to be liquidated, and supplementary expenses and credits for the three month period ending March 31.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    344 views1 page

    Sample Probles For Corpo Liquidation Part 2

    Uploaded by

    Kezia Guevarra
    The Palubog Co. is seeking liquidation after previous restructuring attempts failed. It has various assets and liabilities on its condensed balance sheet. The key assets include plant assets worth P300,000 and receivables worth P280,000, some of which are pledged as collateral. The equipment loan of P360,000 is fully secured by plant assets. Accounts payable of P40,000 is partially secured by inventory. Zero Na Co. has been undergoing liquidation since January. Its condensed statement shows assets realized and to be realized, liabilities liquidated and to be liquidated, and supplementary expenses and credits for the three month period ending March 31.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    I. The Palubog Co.

    has decided to seek liquidation after previous restructuring and quasi­ reorganization attempts 
    failed. The company has the following condensed balance sheet as of May 1, 2020: 
     
    Assets Liabilities and Equity 
    Cash P 12,000 Accrued payroll P 40,000 
    Receivables (net) 280,000 Loans from officer 50,000 
    Inventory  70,000 Accounts payable  60,000 
    Prepaid expense 1,000 Equipment loan payable 360,000 
    Plant assets 300,000 Business loan payable 180,000 
    Goodwill 39,000 Common stock 60,000 
    Deficit (48,000) 
    Total P702,000 Total P702,000 
     
    The  equipment  loan  payable  is  secured  by  specific  plant  assets  having  a  book  value  of  P300,000  and  a  realizable 
    value  of  P350,000.  Of  the  accounts  payable  P40,000  is  secured  by  inventory  which  has  a  cost  of  P40,000  and  a 
    liquidation  value  of  P44,000.  The  balance  of  inventory  has  a  realizable  value  of  P32,000.  Receivables  with  a  book 
    value  and  market  value  of  P100,000  and  P80,000  respectively  have  been pledged as collateral on the business loan 
    payable. The balance of the receivables have a realizable value of P150,000 
     
    1. Assuming trustee expenses of P12,000 in addition to recorded liabilities, which of the remaining unsecured 
    creditors has the next highest order of priority 
    a. Accrued payroll c. Loan from the officer 
    b. Equipment loan payable d. business loan payable 
     
    2. The realizable value of assets pledged with fully secured creditors is? 
    3. Of those creditors who are partially secured, their unsecured amounts are? 
    4. The total realizable value of free assets to unsecured creditors before unsecured creditors with priority is? 
    5. The dividend to unsecured creditors or the expected recovery percentage of unsecured creditors is? 
    6. Estimated deficiency to unsecured creditors is? 
    7. Estimated loss on asset disposition? 
    8. Estimated gain on disposition? 
    9. Estimated amount paid to unsecured creditors with priority? 
    10. Estimated amount to fully secured creditors? 
    11. Estimated amount paid to unsecured creditors without priority? 
    12. Estimated payment to partially secured creditors? 
     
    II. Zero Na Co. has been undergoing liquidation since January 1. As of March 31, it is condensed statement of 
    realization and liquidation is presented below: 
    Assets: 
    Assets to be realized P 1,375,000 
    Assets acquired 750,000 
    Assets realized 1,200,000 
    Assets not realized 1,375,000 
    Liabilities: 
    Liabilities liquidation P 1,875,000 
    Liabilities not liquidated 1,700,000 
    Liabilities to be liquidated 2,250,000 
    Liabilities assumed 1,625,000 
    Revenues and expenses: 
    Supplementary charges P 3,125,000 
    Supplementary credits 2,800,000 
     
    The net gain (loss) for the three month period ending March 31 is? 
     

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