1 A B C Total

Net loss
Interest 47,250 23,865 16,235 87,350
Salary 122,325 82,625 204,950
Residual (139,308) (139,308) (139,308) (417,924)
Net P/L 30,267 (115,443) (40,448) (125,624)

2 D E
Cash 15,000 50,000
Inventory 45,000
Land 15,000
Building 65,000
F&F 100,000
Mortgage (30,000)
Capital 115,000 145,000 260,000

3 V A L Total Total cap. 585,000

Contributed 150,000 180,000 195,000 525,000 Share of L 33%
Revaluation 30,000 30,000 60,000 L, cap. 195,000
Agreed 180,000 210,000 195,000 585,000

4 30% 20% 50%

A B C
Capital 120,000 70,000 80,000
Withdrawal (24,000) (24,000) (24,000)
Loss (9,600) (6,400) (16,000) (32,000)
Ending 86,400 39,600 40,000
Revaluation (14,400) (9,600) (24,000) (48,000)
72,000 30,000 16,000

5 X Y Z
Agreed 75,000 105,000 90,000
Bonus 7,500 7,500 (15,000)
Contributed 82,500 112,500 75,000
 6 33% 67%
A B Total
Capital 48,000 96,000
P/L 10,860 21,720 32,580
Withdrawal (10,100) (16,000)
Ending 48,760 101,720 150,480
Reduction (18,600) (41,400) (60,000)
30,160 60,320 90,480

7 D J Total
Interest 18,000 13,800 31,800
Salaries 72,000 60,000 132,000
Remainder (31,900) (31,900) (63,800)
58,100 100,000

8 33% 67%
H I Total
Capital 250,000
Salary 180,000
Share in NI 40,000 80,000 120,000
Withdrawal (320,000)
Ending 150,000

9 and 10 40% 40% 20%

Dy Co Ang Total Total:
Capital 250,000 380,000 200,000 To Dy 7,110
Other interest (4,000) (30,000) 10,000 To Ang 90,555
Total interest 246,000 350,000 210,000 To creditors 175,000
P/L 205,600 205,600 102,800 514,000 Payment 272,665
Ending 451,600 555,600 312,800
Loss on NCA (3,690) (3,690) (1,845) (9,225)
Liq Exp (14,000) (14,000) (7,000) (35,000)
433,910 537,910 303,955
MPL (426,800) (426,800) (213,400) (1,067,000)
Payment 7,110 111,110 90,555
 15 Loan payable 3,000,000 Partially secured 750,000 Unsecured portion of loan
Recovery pct 92% 750,000 Notes payable
Total payment 2,760,000 1,500,000 Total unsecured w/o priority
Secured portion (2,250,000) 68% Recovery percentage
510,000 Paid unsecured portion 1,020,000 Net free assets
750,000 Unsecured portion of loan 2,250,000 Wages payable
68% Recovery percentage 1,500,000 Income tax payable
400,000 Liquidation expenses
5,170,000 Total free assets

16 and 17 5,170,000 Total free assets 4,870,000 NRV of building

3,750,000 Mortgage payable (7,200,000) Book value of building
2,250,000 Secured portion of loan payable (2,330,000) Loss on realization
11,170,000 Total assets/ payment to liabs
(4,050,000) Cash
(2,250,000) NRV of machine/ equipment
4,870,000 NRV of building

18 BV NRV Secured Free Recorded Liabs: Secured

Furniture 153,750 102,500 95,875 6,625 Notes payable 92,000 92,000
Machinery 96,000 67,200 68,750 - Loans payable 244,500 67,200
Equipment 161,250 123,750 - 123,750 Other liabs 138,500 -
Cash 14,875 14,875 - 14,875 Total 475,000
Prepaid exp. 9,500 - - -
Goodwill 27,500 - - -
Other assets 137,125 82,275 82,275
Total 600,000 390,600 164,625 227,525
Salaries payable (21,750)
Taxes payable (14,500)
Trustee's fees (10,625)
Net free assets 180,650

19 180,650 Net free assets Payment to Partially secured creditor:

315,800 Unsecured w/o priority Secured 67,200
 57.20% Recovery percentage Unsecured 1,550
Recovery % 57.20% 887
Total 68,087

20 444,500 Total assets

(161,500) Cash
283,000 Assets to be realized, March 1
4,000 Accrued interest on note
(10,000) A/R collected
(40,000) Invty sold for 60,000
(60,000) Note collected
(4,000) Interest on note collected
(26,000) Furniture sold
(45,000) Invty sold for 54,000
54,000 Credit sales
156,000 Assets to be realized, April 1

21 4,000 Note interest income

(8,000) Note interest expense
(15,000) Note interest expense
(2,000) Loss on A/R collection
20,000 Gain on sale of invty
(28,000) Loss on note collection
(9,000) Loss on sale of furniture
(18,000) Administrative expenses
9,000 Profit on sale of invty
(47,000) Net loss
150,000 Share capital
(55,500) Deficit
47,500 Estate equity

22 No mention of payment to any unsecured w/o priority liabilities

Unsecured
-
177,300
138,500
315,800
23 and 24 Standalone Pct Bundle Earned Unearned
Food stall 500,000 50% 450,000 450,000 -
Trademark 200,000 20% 180,000 9,000 171,000
Raw materials 300,000 30% 270,000 108,000 162,000
1,000,000 100% 900,000 567,000 333,000

26 2022 2023 2022 2023

Costs: Contract price 4,500,000 4,500,000
Cumulative 3,075,000 3,780,000 Penalty - (500,000)
Remaining 1,025,000 420,000 Total 4,500,000 4,000,000
Total 4,100,000 4,200,000 Cost (4,100,000) (4,200,000)
POC 75% 90% 400,000 (200,000)
POC 75% 100%
RGP 300,000 (200,000)
Prior year - (300,000)
To recognize 300,000 (500,000)

27 2021 2022 2023 Cumulative

Costs incurred 40,000,000 10,000,000 20,000,000 70,000,000
Costs to complete 10,000,000 10,000,000
Total 80,000,000
Contract price 100,000,000 100,000,000
Gross profit 20,000,000 Since gross profit is positive, record CIP @ cost incurred

28 2021 2022 2023

RGP 750,000 (250,000) (800,000)
Prior years - 750,000 500,000
Cumulative 750,000 500,000 (300,000)

Contract price 10,000,000

POC in 2022 50% 5,000,000 Revenue up to 2022
Cost in 2023 3,740,000
Revenue in 2023
Loss in 2023 (800,000)
CIP 7,940,000
29 2021 2022 2021 2022
Contract price 10,000,000 10,000,000 RGP 250,000 350,000
POC 12.5% 60.0% Prior years - 250,000
Rev. recognized 1,250,000 6,000,000 Cumulative 250,000 600,000
Costs incurred (1,000,000)
RGP 250,000

2023
Cumulative costs 10,800,000
POC 90%
Est. total cost 12,000,000
Cumulative loss (1,000,000)
Contract price, 2023 11,000,000
POC 90%
Revenue up to 2023 9,900,000
Already recognized (6,000,000) Entry:
Recognized in 2023 3,900,000 Cost 5,500,000
Loss in 2023 1,600,000 CIP 1,600,000
Cost in 2023 5,500,000 Revenue 3,900,000

30
Manufacturing cost 200,000 Price per box 3,000
Boxes 100 Cost per box (2,100)
Cost per box 2,000 Profit per box 900
Boxes shipped 30 Sold units 20
60,000 18,000
Freight-in 3,000 Commission (3,000) 5% of sales
Cost of boxes shipped 63,000 Net income 15,000
Boxes shipped 30
Cost per box 2,100

31 Price per box 3,000

Sold units 20
 Sales 60,000
Commission (3,000)
Freight collect (3,000)
Remittance 54,000

32 Price 120,000 Recognized

FV of trade-in 70,000 Downpayment 30,000 30,000
Trade-in allowance (40,000) 30,000 Trade-in 40,000 70,000
150,000 Installment 50,000 25,000
Cost (90,000) Total 120,000 125,000
Gross profit 60,000 GP rate
GP rate 40% DGP

Loss on repo 3,000

DGP 10,000
Repo merch 12,000
IAR 25,000
fit is positive, record CIP @ cost incurred to date.
2023
(1,600,000)
600,000
(1,000,000)
Unrecognized
-
-
25,000
25,000
40%
10,000
 43 HO IIB
164,100 153,300
1 (72,000)
2 90,000
3 (21,600)
4 (7,200)
5 (21,600)
142,500 142,500

44 and 45 HO IIB
124,470 129,000
1 180
2 (1,650)
3 2,700
127,350 127,350

46 HO Branch Purchases 120,000

BI 40,800 11,880 % shipped 40%
At cost 10,800 48,000
Shipments 52,800 Billed price 110%
CoGAS 63,600 52,800
EI at cost (13,200)
Expenses (31,440)
Net Income 18,960

47 HO Branch Shipments 30,000

Physical count 125%
From outsiders 55,000 5,500 Billed price 37,500
16,800 Received (32,500)
55,000 22,300 In transit 5,000
In transit 4,000 At cost 4,000
Ending invty 55,000 26,300 81,300
48 HO Branch
From outsiders 80,000 7,500
20,000
Beginning invty 80,000 27,500 107,500
Purchases 200,000 15,000 215,000
CoGAS 322,500
Ending invty (81,300)
CoGS 241,200

49 HO Branch
Sales 250,000 75,000 325,000
CoGS (241,200)
Expenses (40,000) (10,000) (50,000)
Net income 33,800
52 and 55 Job 1 Job 2 Job 5 Indirect
DM 36,000 30,000 30,000 120,000 total DM 24,000
DL 21,250 26,350 35,700 8.5 per hr DL 33,000
OH 25,500 31,620 42,840 120% of DL OH 36,000
82,750 87,970 108,540 Actual OH 93,000
Applied OH (99,960)
DM % 30% 25% 25% Overapplied (6,960)
DL hrs 2,500 3,100 4,200

53 Job 1 82,750
Job 2 87,970
WIP 170,720

54 DM 36,000
DL 21,250
Prime 57,250

56 DM 250 Produced 5,000

DL 100 Spoiled (125)
OH 150 150% of DL Good units 4,875
Unit cost 500
Good units 4,875
FG 2,437,500

57 DM 250 Spoiled units 125

DL 100 NRV 350
OH 125 SUI 43,750
Unit cost 475
All units 5,000 Rework:
FG w/spoilage 2,375,000 DM 50
SUI (43,750) DL 25
Rework cost 12,750 OH 31.25
FG 2,344,000 106.25
 Defective 120
Rework cost 12,750

58 and 59 Admin Asset value Personnel Employees Allocation Overhead

A 216,000 300,000 A 175,000 15 A 391,000 700,000
B 108,000 150,000 B 58,333.33 5 B 166,333 200,000

C 576,000 800,000 C 116,666.67 10 C 692,667 250,000

900,000 1,250,000 350,000 30

60 and 61 Admin Asset value Personnel Employees Allocation Overhead

A 145,945.95 300,000 A 320,945.95 15 A 466,892 700,000
B 72,972.97 150,000 B 106,981.98 5 B 179,955 200,000
C 389,189.19 800,000 C 213,963.96 10 C 603,153 250,000

Personnel 291,891.89 600,000 641,892 30

900,000 1,850,000

Disposal
62 Barrels SP @ split-off cost NRV @ split-off NRV (total) Joint costs
C 750 100 (65) 35 26,250 10,172.23
D 1,000 80 (40) 40 40,000 15,500.54
E 1,400 110 (70) 40 56,000 21,700.75
G 2,000 150 (95) 55 110,000 42,626.48
232,250 90,000

Procesing
63 Barrels Final SP costs Disposal cost NRV NRV (total) Joint costs
C 750 135 (20) (25) 90 67,500 14,310.95
D 1,000 100 (25) (10) 65 65,000 13,780.92
E 1,400 155 (40) (35) 80 112,000 23,745.58
 G 2,000 195 (45) (60) 90 180,000 38,162.54
424,500 90,000
64 Std price 3.75
Actual price 3.70
0.05
Actual quantity 14,700
MPV 735 favorable

65 Std hours 10,500

Actual hrs 10,400
100
Std rate 8.25
LEV 825 favorable
 Total
1,091,000
366,333

942,667

Total
1,166,892
379,955
853,153
11 B
12 B
13 D
14 C
25 D Creditors come first before any stockholders.
34 A
35 B A is wrong because it should be "an asset that the CUSTOMER controls"
C is wrong because it should be "an asset with NO alternative use"
36 C
37 A
38 C
39 D
40 B Contra-installment receivable
41 B
42 D
50 A
51 C
66 C
67 B
68 C
69 D Overapplied OH is a deduction to WIP, FG and COGS
70 A