question archive VIII - Statement of Affairs Wilbur Corporation is to be liquidated
VIII - Statement of Affairs Wilbur Corporation is to be liquidated
Subject:AccountingPrice: Bought3
VIII - Statement of Affairs Wilbur Corporation is to be liquidated. The balance sheet on December 31, 20x4, is as follows: Cash............ Marketable securities. Accounts receivable, net. Inventory Prepaid insurance. Land.... Plant and Equipment, net Franchises... Accounts payable.. Wages payable..... Taxes payable.. Interest payable. Notes payable. Mortgage payable.. Common stock, P5 par. Retained earnings (deficit) ? 4,000 20,000 75,000 90,000 6,000 50,000 250,000 48,000 120,000 13,000 20,000 25,000 125,000 150,000 180,000 ( 90,000) 15 The following additional information is available: 1. Marketable securities consist of 2,000 shares of Bristol Inc. common stock. The more value per share of the stock is P8. The stock was pledged against a P20.000.8 percent 2. Accounts receivable of P40,000 are collateral for a P35,000, 10 percent note pays note payable that has accrued interest of P800. that has accrued interest of P3,500. 3. Inventory with a book value of P35,000 and a current value of P32,000 is pledged agairs accounts payable of P60,000. The appraised value of the remainder of the inventorit P50,000. 4. Only P1,000 will be recovered from prepaid insurance 5. Land is appraised at P65,000 and plant and equipment at P160,000. 6. It is estimated that the franchises can be sold for P15,000. 7. All the wages payable qualify for priority. 8. The mortgages are on the land and on a building with a book value of P110,000 and os appraised value of P100,000. The accrued interest on the mortgages is P7,500. 9. Estimated legal and accounting fees for the liquidation are P10,000. Required: 1. Prepare a statement of affairs as of December 31, 20x4 2. Compute the estimated percentage settlement to unsecured creditors.
