Question 1 Complete Mark 1 out of 1 Question text A company that is in the process of liquidation had the following liabilities:

Income Taxes P10,000 Notes Payable secured by land 100,000 Accounts Payable 51,050 Salaries Payable (P10,950 to a contractual employee and P2,000 to a regular employee) 12,950 Administrative Expenses for liquidation20,000 The company had the following assets: Book Value Fair Value Current Assets P100,000 P95,000 Land 50,000 75,000 Building 150,000 200,000 Determine total free assets before deducting preferred creditors Select one: a. P75,000 b. P270,000 c. P295,000 d. P275,000 Question 2 Complete Mark 1 out of 1Question text A company that is in the process of liquidation had the following liabilities: Income Taxes P10,000 Notes Payable secured by land 100,000 Accounts Payable 51,050 Salaries Payable (P10,950 to a contractual employee and P2,000 to a regular employee) 12,950

Administrative Expenses for liquidation 20,000 The company had the following assets: Book Value Fair Value Current Assets P100,000P95,000 Land 50,000 75,000 Building 150,000 200,000 Determine the net free assets before deducting preferred creditors: Select one: a. P251,000 b. P226,000 c. P252,050 d. P247,050 Question 3 Complete Mark 1 out of 1 Question text The BSA CORP is in the process of liquidation and has the following accounts and balances as of December 31, 2020 prior to its application for liquidation: Accounts Payable 189,875-105000=84875 Accounts Receivable 596,400 Bank Loan Payable 385,000 Bonds Payable 700,000-630000=70000 Building, net 603,750 Cash 199,850 Goodwill 96,250 Merchandise Inventory 140,000-92750= Note Payable 140,000 Ordinary Share 210,000

Prepaid Insurance 4,375 Retained Earnings (71,750)Salaries Payable 87,500 The bonds payable is secured by the building with a net realizable value of P630,000. Of the total accounts payable, P105,000 is secured by twenty-five percent of the accounts receivable which is estimated to be eighty percent collectible. Seventy-five percent of the accounts receivable has a realizable value of P411,250 was used to secure the bank loan payable. The inventory has a realizable value of P92,750. In addition to the recorded liabilities are accrued interest on bonds payable of P7,000, liquidation expenses of P4,375, and taxes of P5,250. Compute for the settlement to UNSECURED creditors: Select one: a. P236,007 b. P490,000 c. P175,807 d. P690,199 Question 4 Complete Mark 0 out of 1 Question text A company that is in the process of liquidation had the following liabilities: Income Taxes P10,000 Notes Payable secured by land 100,000 Accounts Payable 51,050 Salaries Payable (P10,950 to a contractual employee and P2,000 to a regular employee) 12,950Administrative Expenses for liquidation 20,000 The company had the following assets: Book Value Fair Value Current Assets P100,000 P95,000 Land 50,000 75,000 Building 150,000 200,000

Determine the total unsecured creditors: Select one: a. P51,050 b. P76,050 c. P85,000 d. P44,000 Question 5 Complete Mark 0 out of 1 Question text The unsecured creditors of INSOLVENT CORP filed a petition on July 1, 2008 to force the company into bankruptcy. The court order for relief was granted on July 10 at which time an interim trustee was appointed to supervise the liquidation procedure. A listing of assets and liabilities of the company as of July 10, 2008, along with estimated realizable values, is as follows: Accounts Book Value Realizable Value Cash 61,400 P61,400 Accounts Receivable 250,000 15% of the accounts receivable is estimated to be uncollectible Allowance for Bad Debts (20,000) Inventories 420,000 Estimated selling price, P340,000 which will require additional costs of P50,000 Prepayments 40,000 ? Investments 180,000 P110,000 Land 210,000 An offer of P500,000 has been received for land and building Building, net 260,000 Machinery and Equipment 220,000 P53,900 Goodwill 200,000 ? Accounts Payable 670,000 Wages Payable 3,400 Notes Payable 160,000 Accrued Interest on Notes 5,000 Mortgage Payable 400,000 Secured by land and building Ordinary Share 800,000 Additional Paid-in Capital 80,000 Deficit (297,000) Additional information: Patents completely written-off the books in past years but with a realizable value of P10,000. The books do not show the following accruals: taxes P16,400 and interest on mortgage P10,000 The investment have been pledged as security for holder of the notes payable The trustee fees and other costs of liquidating the estate are estimated to be P60,000

Compute the estimated amount to be paid to partially secured creditors: Select one: a. P165,000 b. P158,400 c. P60,000 d. P79,800 e. P110,000 Question 6 Complete Mark 1 out of 1 Question text The following information are related to BSBA CORP that is undergoing liquidation:A bank loan amounting to P227,500 is secured by inventories with carrying value of P262,500 and net realizable value of P175,000. Of the P560,000 accounts payable, P171,500 is secured by accounts receivable amounting to P206,500 which is ninety percent collectible. Property and equipment costing P437,500 and which is depreciated by twenty percent has a net realizable value of P294,000. Other unrecorded liabilities are accrued interest payable on bank loan, P22,750; salaries payable, P56,000; taxes payable, P31,500; liquidation expenses, P26,250. Cash available before liquidation amounts to P43,750. Compute for the estimated deficiency to unsecured creditors: Select one: a. P463,750 b. P490,000 c. P441,000 d. P225,000 Question 7 Complete Mark 0 out of 1 Question text The unsecured creditors of INSOLVENT CORP filed a petition on July 1, 2008 to force the company into bankruptcy. The court order for relief was granted on July 10 at which time an interim trustee was appointed to supervise the liquidation procedure. A listing of assets and liabilities of the company as of July 10, 2008, along with estimated realizable values, is as follows: Accounts Book Value Realizable Value Cash 61,400 P61,400 Accounts Receivable250,000 15% of the accounts receivable is estimated to be uncollectible

Allowance for Bad Debts (20,000) Inventories 420,000 Estimated selling price, P340,000 which will require additional costs of P50,000 Prepayments 40,000 ? Investments 180,000 P110,000 Land 210,000 An offer of P500,000 has been received for land and building Building, net260,000 Machinery and Equipment, net 220,000 P53,900 Goodwill 200,000 ? Accounts Payable 670,000 Wages Payable 3,400 Notes Payable 160,000 Accrued Interest on Notes5,000 Mortgage Payable 400,000 Secured by land and building Ordinary Share 800,000 Additional Paid-in Capital 80,000 Deficit (297,000) Additional information: Patents completely written-off the books in past years but with a realizable value of P10,000. The books do not show the following accruals: taxes P16,400 and interest on mortgage P10,000 The investment have been pledged as security for holder of the notes payable The trustee fees and other costs of liquidating the estate are estimated to be P60,000Compute the estimated amount to be paid to preferred creditors: Select one:

a. P79,800 b. P60,000 c. P110,000 d. P165,000 e. P158,400 Question 8 Complete Mark 1 out of 1 Question text The unsecured creditors of INSOLVENT CORP filed a petition on July 1, 20... PM Question 8 Complete Mark 1 out of 1 Question text The unsecured creditors of INSOLVENT CORP filed a petition on July 1, 2008 to force the company into bankruptcy. The court order for relief was granted on July 10 at which time an interim trustee was appointed to supervise the liquidation procedure. A listing of assets and liabilities of the company as of July 10, 2008, along with estimated realizable values, is as follows: Accounts Book Value Realizable Value Cash 61,400 P61,400 Accounts Receivable 250,000 15% of the accounts receivable is estimated to be uncollectible Allowance for Bad Debts(20,000) Inventories 420,000 Estimated selling price, P340,000 which will require additional costs of P50,000 Prepayments 40,000 ? Investments 180,000 P110,000 Land 210,000 An offer of P500,000 has been received for land and building Building, net 260,000 Machinery and Equipment, net

220,000P53,900 Goodwill 200,000 ? Accounts Payable 670,000 Wages Payable 3,400 Notes Payable 160,000 Accrued Interest on Notes 5,000 Mortgage Payable400,000 Secured by land and building Ordinary Share 800,000 Additional Paid-in Capital 80,000 Deficit (297,000) Additional information: Patents completely written-off the books in past years but with a realizable value of P10,000. The books do not show the following accruals: taxes P16,400 and interest on mortgage P10,000 The investment have been pledged as security for holder of the notes payable The trustee fees and other costs of liquidating the estate are estimated to be P60,000 Compute total free assets Select one: a. P1,831,400 b. P1,821,400 c. P638,000 d. P717,800 Question 9 Complete Mark 1 out of 1 Question text The unsecured creditors of INSOLVENT CORP filed a petition on July 1, 2008 to force the company into bankruptcy. The court order for relief was granted on July 10 at which time an interim trustee was appointed to supervise the liquidation procedure. A listing of assets and liabilities of the company as of July 10, 2008, along with estimated realizable values, is as follows: Accounts Book Value Realizable Value

Cash 61,400 P61,400 Accounts Receivable 250,000 15% of the accounts receivable is estimated to be uncollectible Allowance for Bad Debts (20,000) Inventories 420,000Estimated selling price, P340,000 which will require additional costs of P50,000 Prepayments 40,000 ? Investments 180,000 P110,000 Land 210,000 An offer of P500,000 has been received for land and building Building, net 260,000 Machinery and Equipment, net 220,000 P53,900 Goodwill 200,000? Accounts Payable 670,000 Wages Payable 3,400 Notes Payable 160,000 Accrued Interest on Notes 5,000 Mortgage Payable 400,000 Secured by land and building Ordinary Share800,000 Additional Paid-in Capital 80,000 Deficit (297,000) Additional information: Patents completely written-off the books in past years but with a realizable value of P10,000. The books do not show the following accruals: taxes P16,400 and interest on

mortgage P10,000 The investment have been pledged as security for holder of the notes payable The trustee fees and other costs of liquidating the estate are estimated to be P60,000 Compute estimated deficiency to unsecured creditors Select one: a. P27,000 b. P7,200 c. 87,000 d. P47,800

Question 10 Complete Mark 0 out of 1 Question text The unsecured creditors of INSOLVENT CORP filed a petition on July 1, 2008 to force the company into bankruptcy. The court order for relief was granted on July 10 at which time an interim trustee was appointed to supervise the liquidation procedure. A listing of assets and liabilities of the company as of July 10, 2008, along with estimated realizable values, is as follows:Accounts Book Value Realizable Value Cash 61,400 P61,400 Accounts Receivable 250,000 15% of the accounts receivable is estimated to be uncollectible Allowance for Bad Debts (20,000) Inventories 420,000 Estimated selling price, P340,000 which will require additional costs of P50,000 Prepayments 40,000? Investments 180,000 P110,000 Land 210,000 An offer of P500,000 has been received for land and building Building, net 260,000 Machinery and Equipment, net 220,000 P53,900

Goodwill 200,000 ? Accounts Payable 670,000Wages Payable 3,400 Notes Payable 160,000 Accrued Interest on Notes 5,000 Mortgage Payable 400,000 Secured by land and building Ordinary Share 800,000 Additional Paid-in Capital 80,000Deficit (297,000) Additional information: Patents completely written-off the books in past years but with a realizable value of P10,000. The books do not show the following accruals: taxes P16,400 and interest on mortgage P10,000 The investment have been pledged as security for holder of the notes payable The trustee fees and other costs of liquidating the estate are estimated to be P60,000 Compute the expected recovery percentage of unsecured creditors: Select one: a. 96.00% b. 88.00% c. 86.62% d. 95.00%