When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) Land and Building (fair value, P240,000) Goodwill (fair value, 0) Total Assets Accounts Payable Mortgage Payable (secured by land & building) Ordinary share Accumulated profits Total Liabilities and Equity c. 50.00% P 80,000 200,000 d. 43.75% 40,000 P320,000 P160,000 200,000 100,000 (140,000) What percentage of their claims are the unsecured creditors likely to get? a. 100% b. 56.25% P320,000
When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) Land and Building (fair value, P240,000) Goodwill (fair value, 0) Total Assets Accounts Payable Mortgage Payable (secured by land & building) Ordinary share Accumulated profits Total Liabilities and Equity c. 50.00% P 80,000 200,000 d. 43.75% 40,000 P320,000 P160,000 200,000 100,000 (140,000) What percentage of their claims are the unsecured creditors likely to get? a. 100% b. 56.25% P320,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the
following statement of financial position:
Current Assets (net realizable value, P50,000)
Land and Building (fair value, P240,000)
Goodwill (fair value, 0)
Total Assets
Accounts Payable
Mortgage Payable (secured by land & building)
Ordinary share
Accumulated profits
Total Liabilities and Equity
b. 56.25%
c. 50.00%
P 80,000
200,000
d. 43.75%
40,000
P320,000
P160,000
200,000
100,000
What percentage of their claims are the unsecured creditors likely to get?
a. 100%
(140,000)
P320,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F293cf386-74e4-4c5a-bc37-48dea75a5a27%2F70fc79c6-3731-40ef-92c9-83192be68409%2Fi733kd8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the
following statement of financial position:
Current Assets (net realizable value, P50,000)
Land and Building (fair value, P240,000)
Goodwill (fair value, 0)
Total Assets
Accounts Payable
Mortgage Payable (secured by land & building)
Ordinary share
Accumulated profits
Total Liabilities and Equity
b. 56.25%
c. 50.00%
P 80,000
200,000
d. 43.75%
40,000
P320,000
P160,000
200,000
100,000
What percentage of their claims are the unsecured creditors likely to get?
a. 100%
(140,000)
P320,000
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