In: Accounting
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