The following information is available on September 20,

2021, for FRESH and GREEN COMPANY, which is having

difficulty in paying its liabilities as they become due:

Carrying Amount

Cash P 6,881

Accounts receivable, net, fair value

equal to carrying amount

79,135

Inventories, current fair value ,

P30,966 pledged on P36,127 of notes

payable

67,093

Machinery and equipment, net,

current fair value of P115,950

pledged on mortgage note payable

184,075

Office supplies, current fair value of

P4,301

Total Assets

3,440

P340,624

Wages payable 9,978

Taxes payable 2,065

Accounts payable 103,219

Notes payable, P36,127 of which is

secured by inventories

68,813

Mortgage note payable 86,704

Common stock, P10 par 172,032

Retained earnings, deficit

Total Liabilities and Equity

102,187

P340,624

Additional information:

(1) Estimated liability to the trustee is P44,728.

(2) A delivery van previously given to the supervisor was returned to the company, fair market value, P43,008.

REQUIRED:

a. Prepare statement of affairs as of September 20, 2021. b. Compute the estimated recoverable amounts to the different types of creditors in the event of liquidation. c. Prepare statement of deficiency to unsecured creditors at September 20, 2021.

Answer rating: 100% (QA)

a Statement of Affairs as of September 20 2021 Assets Cash P 6881 Accounts receivable 79135 Inventor... View the full answer