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1-Statement of Affairs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholders have requested an estimate of the results of a liquidation of the company. Miner's trial balance follows: Credit Accounts Cash. Accounts receivable. Allowance for bad debts.. Notes Receivable.. Accrued Interest on Notes Receivable. Inventory....... Buildings.. Accumulated Depreciation-Buildings... Equipment... Accumulated Depreciation-Equipment. Prepaid insurance. Goodwill INDONES...00 Debit P 6,000 63,000 X 1 Y 50,000 92-1,200 Accrued Wages-with Priority. Taxes Payable-with Priority.. Accounts Payable. Notes Payable. Accrued Interest Payable. Common Stock Retained Earnings (deficit), Totals. The assets are expected to bring cash on conversion in the following amounts: Accounts Receivable. Notes receivable including P1,000 accrued interest.. Inventory. Building Equipment. Prepaid insurance. 60,000 T 182,000 14.600 1,100 8,500 DE 2015. P 2,000 63.000 1,400 16,000 2.400 170,000 80,000 1,600 110.000 50.000 P 436.400 P 436.400 P 50,000 40,800 30,000 75.000 4,200 400 The notes receivable are pledged as security on a note payable of P40.000. A note payable d P20,000 is secured by a lien on the building, and the equipment is pledged as security on a note payable of P10,000. One-half of the interest payable relates to the P40.000 note payable; the other half of the interest payable relates to the P20,000 note payable. There is no accrued interest on the other notes payable. Required: 1. Prepare a statement of affairs as of May 31, 20x4. Include a deficiency account, and 2. Determine the estimated dividend rate to the general unsecured creditors

1-Statement of Affairs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholders have requested an estimate of the results of a liquidation of the company. Miner's trial balance follows: Credit Accounts Cash. Accounts receivable. Allowance for bad debts.. Notes Receivable.. Accrued Interest on Notes Receivable. Inventory....... Buildings.. Accumulated Depreciation-Buildings... Equipment... Accumulated Depreciation-Equipment. Prepaid insurance. Goodwill INDONES...00 Debit P 6,000 63,000 X 1 Y 50,000 92-1,200 Accrued Wages-with Priority. Taxes Payable-with Priority.. Accounts Payable. Notes Payable. Accrued Interest Payable. Common Stock Retained Earnings (deficit), Totals. The assets are expected to bring cash on conversion in the following amounts: Accounts Receivable. Notes receivable including P1,000 accrued interest.. Inventory. Building Equipment. Prepaid insurance. 60,000 T 182,000 14.600 1,100 8,500 DE 2015. P 2,000 63.000 1,400 16,000 2.400 170,000 80,000 1,600 110.000 50.000 P 436.400 P 436.400 P 50,000 40,800 30,000 75.000 4,200 400 The notes receivable are pledged as security on a note payable of P40.000. A note payable d P20,000 is secured by a lien on the building, and the equipment is pledged as security on a note payable of P10,000. One-half of the interest payable relates to the P40.000 note payable; the other half of the interest payable relates to the P20,000 note payable. There is no accrued interest on the other notes payable. Required: 1. Prepare a statement of affairs as of May 31, 20x4. Include a deficiency account, and 2. Determine the estimated dividend rate to the general unsecured creditors

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...
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voilat zo boteam PROBLEMS anzeitlidio bro besten foratsiona 1-Statement of Affairs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholders have requested an estimate of the results of a liquidation of the company. Miner's trial balance follows: Accounts Credit Cash... Accounts receivable. Allowance for bad debts.. Notes Receivable.. Accrued Interest on Notes Receivable. Inventory. Buildings. Accumulated Depreciation-Buildings. Equipment... Accumulated Depreciation-Equipment.. Prepaid insurance.. Goodwill Accrued Wages-with Priority. Taxes Payable-with Priority. Accounts Payable. Notes Payable.. Accrued Interest Payable. Common Stock Retained Earnings (deficit). Totals... KASUS 64 Accounts Receivable... Notes receivable including P1,000 accrued interest. Inventory.... Building Equipment.... Prepaid insurance.. Debit P 6,000 63,000 Y-50,000 Pikar 90 1,200 60,000 182,000 14.600 1,100 8,500 P 2,000 10. GENEREN] 73 63,000 1,400 50.000 P 436.400 P 436.400 eldecatron to inay The assets are expected to bring cash on conversion in the following amounts: Teck 116.000 2.400 170,000 80,000 1.600 110.000 P 50,000 40,800 30,000 75,000 4,200 400 The notes receivable are pledged as security on a note payable of P40,000. A note payable of P20,000 is secured by a lien on the building, and the equipment is pledged as security on a note payable of P10,000. One-half of the interest payable relates to the P40,000 note payable: the other half of the interest payable relates to the P20.000 note payable. There is no accrued interest on the other notes payable. Required: 1. Prepare a statement of affairs as of May 31, 20x4. Include a deficiency account, and 2. Determine the estimated dividend rate to the general unsecured creditors.
Transcribed Image Text:voilat zo boteam PROBLEMS anzeitlidio bro besten foratsiona 1-Statement of Affairs and Deficiency Account Miner Company is being forced into bankruptcy. The company's creditors and stockholders have requested an estimate of the results of a liquidation of the company. Miner's trial balance follows: Accounts Credit Cash... Accounts receivable. Allowance for bad debts.. Notes Receivable.. Accrued Interest on Notes Receivable. Inventory. Buildings. Accumulated Depreciation-Buildings. Equipment... Accumulated Depreciation-Equipment.. Prepaid insurance.. Goodwill Accrued Wages-with Priority. Taxes Payable-with Priority. Accounts Payable. Notes Payable.. Accrued Interest Payable. Common Stock Retained Earnings (deficit). Totals... KASUS 64 Accounts Receivable... Notes receivable including P1,000 accrued interest. Inventory.... Building Equipment.... Prepaid insurance.. Debit P 6,000 63,000 Y-50,000 Pikar 90 1,200 60,000 182,000 14.600 1,100 8,500 P 2,000 10. GENEREN] 73 63,000 1,400 50.000 P 436.400 P 436.400 eldecatron to inay The assets are expected to bring cash on conversion in the following amounts: Teck 116.000 2.400 170,000 80,000 1.600 110.000 P 50,000 40,800 30,000 75,000 4,200 400 The notes receivable are pledged as security on a note payable of P40,000. A note payable of P20,000 is secured by a lien on the building, and the equipment is pledged as security on a note payable of P10,000. One-half of the interest payable relates to the P40,000 note payable: the other half of the interest payable relates to the P20.000 note payable. There is no accrued interest on the other notes payable. Required: 1. Prepare a statement of affairs as of May 31, 20x4. Include a deficiency account, and 2. Determine the estimated dividend rate to the general unsecured creditors.
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