P18-1

1. Entries on trustee’s books:

March 1, 2011

Cash 4,000

Accounts receivable — net 8,000

Inventories 36,000

Land 20,000

Buildings — net 100,000

Intangible assets 26,000

Accounts payable 50,000

Note payable — unsecured 40,000

Revenue received in advance 1,000

Wages payable 3,000

Mortgage payable 80,000

Estate equity 20,000

March 2011

Cash 7,200

Estate equity 800

Accounts receivable — net 8,000

Cash 19,400

Estate equity 16,600

Inventories 36,000

Cash 90,000

Estate equity 30,000

Land 20,000

Buildings — net 100,000

Estate equity 26,000

Intangible assets 26,000

Estate equity 8,200

Administrative expenses payable — new 8,200

2. Sco in Trusteeship

Balance Sheet

March 31, 2011

Assets

Cash 120,600

Liabilities And Deficit

Accounts payable 50,000

Note payable — unsecured 40,000

Revenue received in advance 1,000

Wages payable 3,000

Mortgage payable 80,000

Administrative expenses payable — new 8,200

Total liabilities 182,200

Less: Estate deficit (61,600)

Total liabilities less deficit 120,600

 Statement of Cash Receipts and Disbursements

from March 1 to March 31, 2011

Cash balance, March 1, 2011 4,000

Add: Cash receipts :

Collections of receivables 7,200

Sale of inventories 19,400

Sale of land and buildings 90,000 116,600

120,600

Less: Cash disbursements 0

Cash balance, March 31, 2011 120,600

Statement of Changes in Estate Equity

from March 1 to March 31, 2011

Estate equity, March 1, 2011 20,000

Less:

Loss on uncollectible receivables 800

Loss on sale of inventories 16,600

Loss on sale of land and buildings 30,000

Loss on write-off of intangibles 26,000

Administrative expenses 8,200 81,600

Estate deficit, March 31, 2011 61,600

3. Entries on trustee’s books:

April 2011

Mortgage payable 80,000

Cash 80,000
Administrative expenses payable — new 8,200

Revenue received in advance 1,000

Wages payable 3,000

Cash 12,200

Accounts payable 15,800

Note payable — unsecured 12,600

Cash 28,400

Accounts payable 34,200

Note payable — unsecured 27,400

Estate equity 61,600