MOUNTAIN VIEW COLLEGE
SCHOOL OF BUSINESS AND ACCOUNTANCY
ACCOUNTING FOR SPECIAL TRANSACTIONS
WORKSHEET#5: CORPORATE LIQUIDATION
INSTRUCTIONS: Answers and all necessary solutions to the requirements must be written in a clean
sheet of paper (all in good form). Submission format must be image file (png or
jpeg).
PROBLEM #1
A company going through a bankruptcy has the following account balances:
Cash ……………………………………………………………………………………. P 30,000
Receivables (30% collectible) ………………………………………………… 50,000
Inventory (worth P39,000) …………………………………………………….. 190,000
Land (worth P120,000) (secures note payable) …………………………. 100,000
Buildings (worth P180,000) (secures bonds payable) ………………… 200,000
Salaries payable ……………………………………………………………………. 10,000
Accounts payable …………………………………………………………………. 90,000
Note payable (secured by land) ………………………………………………. 110,000
