1. Zirangaircon-308 Corp. is experiencing financial difficulty and considering filing for bankruptcy.

The data below are its

Statement of Financial Position:

Cash 4,000 Accounts payable 82,000

Accounts receivable 40,000 Bank loan 25,000
Note receivable - short term 36,000 Loan payable 160,000
Prepaid Expenses 1,000 Wages payable 12,000
Note receivable - long term 50,000 Tax payable 8,000
Land 10,000 Mortgage payable 43,000
Building 70,000 Stockholders' equity (38,000)
Machine 20,000
Equipment 45,000
Intangible 16,000
Total Liabilities &
Total Assets 292,000
Stockholders' Equity 292,000

The following information are ascertained:

Estimated realizable values of the Assets:

Cash 4,000
Accounts receivable 30,000
Note receivable - short term 27,000
Note receivable - long term 55,000
Land 42,000
Building 60,000
Machine 6,000
Equipment 25,000

Secured liabilities:
 P5,000 of the total accounts payable was secured by P3,500 of the total estimated realizable value of the machine
 Bank loan was secured by 80% of the estimated realizable value of the accounts receivable
 Mortgage payable was secured by the land and building
 P50,000 of the total loan payable was secured by the note receivable - long term

Additional information:
 Accrued interest of the mortgage payable and long term note receivable were P10,000 and P20,000 respectively
 Estimated liquidation expenses were P15,000

1. What is the estimated deficiency?

a. (71,000)
b. (96,000)
c. (86,000)
d. (92,000)

2. What is the estimated payment to the bank loan?

a. 24,546
b. 24,000
c. 25,000
d. 24,625

3. What is the estimated loss?

a. (43,000)
b. (80,000)
c. (63,000)
d. (26,000)
2. Walangawsapaw Corp. is experiencing financial difficulty and considering filing for bankruptcy. The following data
below are given:

ASSETS Book value Estimated realizable value

Cash 50,000 50,000
Accounts receivable 80,000 55,000
Building 250,000 280,000

LIABILITIES & STOCKHOLDERS' EQUITY

Accounts payable 60,000
Salaries payable 80,000
Tax payable 70,000
Note payable 35,000
Mortgage payable 200,000
Stockholders' equity (65,000)

Additional information:
 the accounts payable was secured by the accounts receivable
 the mortgage payable was secured by the building
 liquidation expenses were estimated in the amount of P15,000

1. What is the amount received by the holder of the accounts payable?

a. 60,000
b. 55,000
c. 50,000
d. 52,500

2. What is the amount paid for the taxes?

a. 35,000
b. 70,000
c. 50,000
d. 0

3. What is the estimated deficiency?

a. (40,000)
b. (45,000)
c. (75,000)
d. (65,000)
3. BSA3101 Corporation provided the following balances in November 1, 2022:

Cash 5,500 Accounts payable 59,500

Accounts receivable 35,000 Wages payable 25,000
Inventories 60,000 Tax payable 35,000
Notes receivable 78,000 Note payable 65,000
Equipment 256,000 Mortgage payable 175,000
Share capital 120,000
Deficit (45,000)

Total 434,500 Total 434,500

In the statement of realization and liquidation the following data are ascertained for the month of November:

 From the existing accounts receivable at the beginning of the month, P20,000 was collected at book value;
P10,000 of the remaining balance from the existing receivable at the beginning of the month will be collected in
the following month and the rest were worthless
 75% of the inventories were sold for P65,000 cash (perpetual system)
 P56,800 of the notes receivable were collected and the rest were worthless; accrued interest on the notes
receivable was also collected during the month
 Equipment was sold for P195,000
 Administrative expenses of P11,200 were paid
 Additional credit sales amounting to P14,000 were made for the remaining inventories (perpetual system)
 Interests accrued for the month were note receivable P2,800, note payable P6,500 and mortgage payable
P21,000
 The mortgage payable including the interest, wages payable and tax payable were paid
 The remaining non-cash assets are to be realized the following month and the remaining liabilities are to be paid
the following month

1. What is the profit or loss in the statement of realization and liquidation?

a. (104,100)
b. (99,100)
c. 55,600
d. 72,400

2. What is the estate equity at November 30, 2022?

a. (24,100)
b. 130,600
c. (29,100)
d. 147,400

3. What is the cash balance at November 30, 2022?

a. 80,100
b. 77,900
c. 234,800
d. 251,600
4. The following data were ascertained for the month of September in the Statement of realization and liquidation of
MeMyselfI Corp.:

 Assets to be realized for October were P18,000

 Assets realized during the month were P338,000
 Unrecorded assets during the month were P25,000
 Assets not sold or collected at the end of August were P380,000
 Liabilities assumed were P28,000
 Liabilities not liquidated at the end of August were P350,000
 Liabilities paid were P268,800
 Supplementary charges were 86,350 and supplementary credits were P59,700
 Cash balance at the beginning of the month was P10,500.

1. What is the gain or loss in the statement of realization and liquidation?

a. 75,650
b. (75,650)
c. 19,650
d. (19,650)

2. What is the estate equity at the end of September?

a. (35,150)
b. 116,150
c. (60,150)
d. 20,850

1. The following are considered unsecured creditors with priority except

a. Taxes
b. Wages
c. Administrative / Liquidation expenses
d. Loans

2. These are the assets pledged to a specific liability which the estimated realizable value of the assets exceeds the
amount of liability.

a. Assets pledged to partial secured creditors

b. Assets pledged to fully secured creditors
c. Assets pledged to unsecured creditors
d. Free assets

3. Which of the following statements is true regarding the Statement of Affairs

a. The Statement of Affairs is normally prepared at the end of liquidation.
b. The historical cost amounts are relevant in this statement
c. This statement is not a going-concern report.
d. This statement reflects the book value of the debtor's assets and its application of the proceeds to specific
liabilities

4. Which of the following statements regarding the Statement of Realization and Liquidation is false?
a. This statement shows a complete record of the transactions of the receiver for a period of time.
b. Realization of assets only means collection of receivables from customers.
c. The duty of the receiver is to realize the assets, to convert the non-cash assets into cash.
d. When done, this statement will generate a gain or loss.