Corporate Liquidation and Joint Arrangement

1.
Current assets FV P335,000

Priority claims
Partially secured creditors AR and Inventory 65,000
Liability with priority 22,125
Full secured creditors bonds payable 157,500 224,625
Total amount available to unsecured creditors P90,375
Unsecured creditors
Partial secured creditors note payable 60,500
Accounts payable 60,000 120,500
Estimated efficiency to unsecured creditors P(30,125)
2. Est. recovery rate (P90,375 / 120,500) 75%
3. Payments to AP (P60,000 x 70%) P45,000
4. Notes payable (125,500 – 65,000) 60,500 x 75% P110,375

5.
Assets pledged with fully secured creditors P190,000
Assets pledged with partially secured creditors 60,000
free assets 140,000
Total 390,000
Less: priority claims
Fully secured liability 130,000
Liabilities w/priority 20,000
Partially secured 60,000 210,000
Amounts available to unsecured liabilities P180,000
Unsecured creditors:
Partially secured liabilities P 40,000
Unsecured creditors 260,000
Total P 300,000
Estimated recovery % for unsecured creditors (P180,000 / 300,000) 60%
6.
Assets pledge P 60,000
Unsecured (P40,000 x 60%) 24,000
Estimated amount received (P24,000/60,000) 40%
7.
Asset to be realized P 2.062,500
Assets acquired 1,125,000
Liabilities Liquidated 2,812,500
Liabilities not Liquidated 2,550,000
Supplementary charges 4,687,500
Total P13,237,500
Assets realized P 1,800,000
Assets not realized 2,062,500
Liabilities to be liquidated 3,375,000
Liabilities assumed 2,437,500
Supplementary credits 4,200,000
Total P 13,875,000
Total net gain P637,500
8.
Assets not realized P 472,400
Liabilities liquidated:
Bank loan 26,000
Salaries payable 40,000
Taxable payable 18,000
Estate administration expenses 7,500 P 91,500
Liabilities not liquidated
Accounts payable 278,000
Notes payable 234,000
Bank loan (188,000 – 26,000) 162,000 674,000
Total P 1,237,900
Asset realized
Investment in equity security 26,000
Inventory 150,000 176,000
Asset not realized
Accounts receivable 80,000
Land 98,000
Building 60,000
Equipment 48,000 286,000
Liabilities to be liquidated 758,000
Total 1,220,000
Net loss (P 17,900)
9.
Estate equity beginning
Total assets P 584,400
Total liabilities (758,000) (P173,600)
Loss on realization (P 186,400 – 176,000) (10,400)
Estate administration expense (7,500)
Total estate deficit (P191,500)
10.
Cash P 112,000
Sales of investment in equity security 26,000
Sale of inventory 150,000
Total cash 288,000
Less: Payment liabilities
Bank loan P 26,000
Salaries payable 40,000
Taxes payable 18,000
Estate admin expense 7,500 91,500
Total cash, end P 196,500
11.
Deficit as of 12/2022 191,500
Gain on realization
AR (210k-80k) 130,000
Loss on realization
Land (98k – 88k) 10,000
Equipment (48k – 40k) 8,000 (18,000)
Less: admin. Fee (6,000)
Total estate deficit as of 6/30/2023 P85,500
12.
Cash 196,500
Realized AR 210,000
Sale on land 88,000
Sale on equipment 40,000
Total current assets P534,500
Less: Liabilities
Bank load 162,000
Notes payable (234k/2) 117,000
Admin. Fee 6,000 285,000
Total ending balance as of 6/30/2023 P249,500
13.
C.
Equipment in JO 10,000,000
Cash in JO 10,000,000
14.
Revenue 2,000,000
Less: maintenance (500,000)
Depreciation (20M/20yrs) (1,000,000)
Net profit P500,000/2 P250,000
15.
Han Dah
Agreed capital 25,000 25,000
Credit balance 18,000 20,200
Paid expense 1,850 2,600
Total operations sales P44,850 P47,800 P92,650
16.
Agreed capital P50,000
Less: expenses (1,850 + 2,600) 4,450
Total P45,550
17.
Joint operation (8,000 x 3) P24,000
18.
Unsold merchandise 10,000
Marc contribution 24,000
Total P34,000
19.
Net profit 12/2022 1,200,000
Interest in joint venture (1,200,000 x 20%) 240,000

Ending inventory [(100k x 50%) x 70%] (35,000)
Total P205,000
Net profit 12/2023 1,800,000
Interest in joint venture (1,800,000 x 20%) 360,000

Beginning inventory 35,000
Total P395,000 none
20.
Beginning inventory 35,000
Ending inventory (35,000)
Total unrealized profit from sales net tax P0 none
21.
Joint venture profit 2022 1,200,000

Less: ending inventory (35,000)
1,165,000
Interest in joint venture 20%
Total P233,000
Joint venture profit 2023 1,800,000

Add: beginning inventory 35,000
P1,835,000
Interest in joint venture 20%
Total P367,000

Corporate Liquidation and Joint Arrangement

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1.

Current assets FV P335,000

2. Est. recovery rate (P90,375 / 120,500) 75%

3. Payments to AP (P60,000 x 70%) P45,000

4. Notes payable (125,500 – 65,000) 60,500 x 75% P110,375

Interest in joint venture (1,200,000 x 20%) 240,000

Net profit 12/2023 1,800,000

Interest in joint venture (1,800,000 x 20%) 360,000

Joint venture profit 2022 1,200,000

Joint venture profit 2023 1,800,000

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