Question

In: Accounting

A. Seahawks, Inc. had the following consignment transactions during December: Inventory shipped on consignment to Ashe...

A. Seahawks, Inc. had the following consignment transactions during December:

Inventory shipped on consignment to Ashe Company

   18,000

Freight paid by Seahawks

        900

Inventory received on consignment from Fenn Company

   12,000

Freight paid by Fenn

        500

No. sales of consigned goods were made through December 31. Seahawks' December 31 balance sheet should include consigned inventory at

Select one:

a. P12,500

b. P18,900

c. P18,000

d. P12,000

B. Ricoa Company has been forced into bankruptcy and liquidity. Unsecured claims will be paid at the rate of P0.75 on the peso. Coco Company holds a noninterest-bearing not receivable from Ricoa in the amount of P80,000, collateralized by machinery with a liquidation value of P20,000.
The total amount to be realized by Coco on this note receivable is

Select one:

a. P65,000

b. P45,000

c. P60,000

d. P80,000

C.

Maggy Corporation filed a voluntary bankruptcy petition on August 1, 20x7, and the statement of affairs reflects the following information:

Book value

Fair value

Assets pledged for fully secured liabilities

P   50,000

P 45,000

Assets pledged for partially secured liabilities

60,000

    35,000

Free assets

      70,000

65,000

Unsecured liabilities with priority

      20,000

Fully secured liabilities

      30,000

Partially secured liabilities

      40,000

Unsecured liabilities without priority

      75,000

The amount that will be paid to creditors with priority is

Select one:

a. P14,000

b. P20,000

c. P15,000

d. P16,000

Solutions

Expert Solution



Related Solutions

Ceres Computer Sales uses the perpetual inventory system and had the following transactions during December. Dec....
Ceres Computer Sales uses the perpetual inventory system and had the following transactions during December. Dec. 1 Ceres sold merchandise to ABC, Inc. on credit for $8,500, terms 1/10, n/30. The items sold had a cost of $ 4,200. Dec. 6 Ceres purchased merchandise from Jones, Inc. on credit for $6,000, terms 2/10, n/30. Dec. 7 ABC, Inc. returned $1,100 of goods purchased on Dec. 1 (original cost of the goods to ABC is $375). Required: Prepare the general journal...
Nichols, Inc. had the following balances and transactions during​ 2018: Beginning Merchandise Inventory as of January​...
Nichols, Inc. had the following balances and transactions during​ 2018: Beginning Merchandise Inventory as of January​ 1, 2018 300 units at $80 March 10 Sold 60 units June 10 Purchased 600 units at $85 October 30 Sold 360 units What would be reported for Ending Merchandise Inventory on the balance sheet at December​ 31, 2018 if the perpetual inventory system and the first−​in, first−out inventory costing method are​ used? A. 40,800 B. 51,000 C. 24,000 D. 4,800
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December: Part A a. Issued common stock for $5,000 cash b. Paid $1,200 cash for three months’ rent: December 2019; January and February 2020 c. Purchased a used truck for $10,000 on credit (recorded as an account payable) d. Purchased $1,000 of supplies on credit. These are expected to be used during the month (recorded as expense) e. Paid $1,800 for a one-year truck insurance...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December: Part A a. Issued common stock for $5,000 cash b. Paid $1,200 cash for three months’ rent: December 2019; January and February 2020 c. Purchased a used truck for $10,000 on credit (recorded as an account payable) d. Purchased $1,000 of supplies on credit. These are expected to be used during the month (recorded as expense) e. Paid $1,800 for a one-year truck insurance...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December: Part A a. Issued common stock for $5,000 cash b. Paid $1,200 cash for three months’ rent: December 2019; January and February 2020 c. Purchased a used truck for $10,000 on credit (recorded as an account payable) d. Purchased $1,000 of supplies on credit. These are expected to be used during the month (recorded as expense) e. Paid $1,800 for a one-year truck insurance...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December: Part A a. Issued common stock for $5,000 cash b. Paid $1,200 cash for three months’ rent: December 2019; January and February 2020 c. Purchased a used truck for $10,000 on credit (recorded as an account payable) d. Purchased $1,000 of supplies on credit. These are expected to be used during the month (recorded as expense) e. Paid $1,800 for a one-year truck insurance...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December: Part A a. Issued common stock for $5,000 cash b. Paid $1,200 cash for three months’ rent: December 2019; January and February 2020 c. Purchased a used truck for $10,000 on credit (recorded as an account payable) d. Purchased $1,000 of supplies on credit. These are expected to be used during the month (recorded as expense) e. Paid $1,800 for a one-year truck insurance...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December: Part A a. Issued common stock for $5,000 cash b. Paid $1,200 cash for three months’ rent: December 2019; January and February 2020 c. Purchased a used truck for $10,000 on credit (recorded as an account payable) d. Purchased $1,000 of supplies on credit. These are expected to be used during the month (recorded as expense) e. Paid $1,800 for a one-year truck insurance...
On August 5, 2021, Crane Furniture shipped 70 dining sets on consignment to Furniture Outlet, Inc....
On August 5, 2021, Crane Furniture shipped 70 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining set was $340 each. The cost of shipping the dining sets amounted to $2500 and was paid for by Crane Furniture. On December 30, 2021, the consignee reported the sale of 40 dining sets at $840 each. The consignee remitted payment for the amount due after deducting a 5% commission, advertising expense of $590, and installation and setup costs...
Abc Corporation was incorporated on December 1, 2019 and had following transactions during December 1 Dec...
Abc Corporation was incorporated on December 1, 2019 and had following transactions during December 1 Dec Issued Capital for 5000 cash  3 Dec Paid 1200 cash for three months rent in advance  4 Dec Purchased a used truck for 10,000 on credit  4 Dec Purchased Supplies of 1000 on credit  6 Dec Paid 1800 for a one-year truck insurance policy  7 Dec Billed a customer 4500 for work completed to date  8 Dec Collected...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT