26 Using the same information on no.

25, compute the ending cash balance of cash account assuming that common sto
P1,000,000 and P500,000 respectively.
a. P425,000 c. P1,325,000
b. P575,000 d. P1,375,000

Assets:
Assets to be realized 1,375,000.00
Assets acquired 750,000.00
Assets realized 1,200,000.00
Assets not realized 1,375,000.00

Liabilities
Liabilities liquidated 1,875,000.00
Liabilities not liquidated 1,700,000.00
Liabilities to be liquidated 2,250,000.00
Liabilities assumed 1,625,000.00

Revenues and Expenses

Supplementary charges 3,125,000.00
Supplementary credits 2,800,000.00

SOLUTION

Common stock ₱ 1,500,000.00

Less: Deficits (500,000.00)

Stockholder's Equity (SHE) 1,000,000.00

Add: Liabilities not liquidated 1,700,000.00

Total Liabilities and (SHE) 2,700,000.00

Less: Assets not realized (1,375,000.00)

Cash balance, ending: 1,325,000.00 C.

count assuming that common stock and deficits are
 The Palubog Company has decided to seek liquidation after previous restructuring and quisi-reorganization attempt
has the following condensed balance sheet as of May 1, 20x5

Assets Liabilities and Stockho

Cash ₱ 12,000.00 Accrued payroll
Receivables (net) 280,000.00 Loans from officer
Inventory 70,000.00 Accounts Payable
Prepaid Expenses 1,000.00 Equipment loan payable
Plant Assets 300,000.00 Business loan payable
Goodwill 39,000.00 Common Stock
Total: ₱ 702,000.00 Deficits
Total:

The equipment loan payable is secured by sepcific plant assets having a book value of P300,000 and a realizable val
Of the accounts payable, P40,000 is secured by inventory which has a cost of P40,000 and a liquidation value of P44
of the inventory has a realizable value of P32,000. Receivables with a book value and market values of P100,000 an
has been pledged as collateral on the Business loan payable. The balance of the receivables have a realizable value

27 Assuming trustee expenses of P12,000 in addition to recorded liabilities, which of the remaining unsecured creditor
has the next highest order of priority.

a. Accrued payroll c. Loan from officer

b. Equipment loan payable d. Business loan payable

28 The realizable value of assets pledged with fully secured creditor is:
a. P459,000 c. P40,000
b. P44,000 d. P489,000

29 Of those creditors who are partially secured, their unsecured amounts are:
a. P430,000 c. P540,000
b. P110,000 d. P120,000

LIABILITIES REALIZABLE VALUE/SECURED

Equipment loan payable P 360,000 P350,000
Business loan payable 180,000 80,000
P430,000

30 The total realizable value of free assets to unsecured creditors before unsecured creditors with priority is:
a. P628,000 c. P220,000
b. 232,000 d. 198,000

Cost Realizable Value

 Cash ₱ 12,000.00 ₱ 12,000.00
Receivables (net) 100,000.00 80,000.00
Receivables (net) 180,000.00 150,000.00
Inventory 40,000.00 44,000.00
Inventory 30,000.00 32,000.00
Plant Assets 300,000.00 350,000.00
Total ₱ 662,000.00 ₱ 668,000.00

Less: Fully secured creditors

(Accounts payable) (40,000.00)
Partially secured creditors
(Equipment loan payable & (430,000.00)
Business loan payable)
Total free assets available to unsecured creditors: ₱ 198,000.00 D.
 -reorganization attempts failed. The company

Liabilities and Stockholder's Equity

₱ 40,000.00
50,000.00
60,000.00
nt loan payable 360,000.00
oan payable 180,000.00
60,000.00
(48,000.00)
₱ 702,000.00

000 and a realizable value of P350,000.

liquidation value of P44,000. The balance
et values of P100,000 and P80,000 respectively
have a realizable value of P150,000.

ning unsecured creditor

UNSECURED
P 10,000
100,000
110,000

with priority is: