Problem 01:

Requirement: Prepare Statement of Realization and Liquidation

Problem 02:
The Liquid Company had a very unstable financial condition caused by a deficiency of liquid assets. On February 4,
2020, the following information was available:
Cash P 112,000
Assets not realized:
Accounts receivable 80,000
Merchandise inventory 160,000
Investment in common stock 26,400
Land 100,000
Buildings 60,000
Machinery and equipment 48,000
Liabilities not liquidated:
Notes payable P 244,000
Accounts payable 288,000
Salaries payable 40,000
Taxes payable 8,000
Bank loan 180,000
Estate deficit (173,600)
During the six-month period ending July 31, 2020, the trustee sold the investment in common stock for P26,000,
realized P84,000 for the accounts receivable, sold the merchandise for P152,000, and paid-off P26,000 of the bank
loan and all liabilities with priorities (salaries, and wages payable, taxes payable) as well as P7,440 for estate
administration expenses.
Requirement: Prepare Statement of Realization and Liquidation