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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
