1. What is the amount received by the holder of the note payable at the end of corporate liquidation?

Answer:

2. What is the amount received by the holder of the mortgage payable at the end of corporate liquidation?
Answer:

3. What is the amount received by the employees at the end of corporate liquidation concerning their salaries?
Answer:

4. What is the amount of net free assets?

Answer:

5. What is the estimated recovery of the partially secured creditors?

Answer:
6. The capital balances of partners on December 31, 2019 must be:

Answer: Vicky, P_______________; Felix, P________________;Tina, P_______________

7. On December 31, 2019, the partnership reported net income before salaries, interest, and bonus of
P162,500.00. Calculate the 2019 allocation of partnership income:

Answer: Jean, P_______________; Zarren, P_______________

8. Assume that the net loss for the first year of operations is P20,000 with net income of P40,000 in the
subsequent year. Assume further that each partner withdraws the maximum amount from the business each
period. What is the capital balance in Jess’ Capital account at the end of the second year?

Answer:

9. Joy invests P270,000 in cash for a 30% ownership interest. The money goes to the original partners. Goodwill is
to be recorded. How much goodwill should be recognized, and what is Joy’s beginning capital balance?

Answer: Goodwill, P_______________; Joy’s Beg. Capital, P_______________

10. Joy invests P250,000 in cash for a 30% ownership interest. The money goes to the business. No goodwill or other
revaluation is to be recorded. After the transaction, what is Mig’s capital balance?

Answer: