Professional Documents
Culture Documents
1
Date Journal Dr Cr
01/03/2011 Cash 4.000
A/R-net 8.000
Inventories 36.000
Land 20.000
Buildings-net 100.000
Intangible assets 26.000
A/P 50.000
N/P-unsecured 40.000
Revenue received in advance 1.000
Wages payable 3.000
Mortgage payable 80.000
Estate equity 20.000
Mar-11 Cash 7.200
Estate equity 800
A/R-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 exp payable-new 8.200
1
2
Sco in Trusteeship
Balance Sheet
March 31, 2011
Assets :
Cash 120.600
Total assets 120.600
3
Date Journal Dr Cr
Apr-11 Mortgage payable 80.000
Cash 80.000
Administrative exp payable-new 8.200
Revenue received in advance 1.000
Wages payable 3.000
Cash 12.200
A/P 15.800
N/P-unsecured 12.600
Cash 28.400
A/P 34.200
N/P-unsecured 27.400
Estate equity 61.600
2
P18-2
1 Total amount expected to be available for all claims 445.000
Less : Payments to secured and priority claims
Mortgage payable 220.000
Note payable 75.000
Priority claims 80.000 375.000
Expected to be available for unsecured non-prior claims 70.000
P18-3
1 Ranking of claims:
Fully secured:
8. Holders of first mortgage and related interest 228.500
Total 228.500
Unsecured priority:
1. Administrative exp 12.500
6. Wages payable up to $4.000/employee 47.000
7. Customer claims for merchandise paid for and not delivered 1.500
5. State government for gross receipts taxes 3.000
3. Local government for property taxes 4.000
Total 68.000
Unsecured nonprior:
2. Merchandise creditors 99.000
4. Local bank for principal of loan 30.000
6. President for salary due over $4.000 1.000
4. Interest on unsecured bank loan 4.500
Total 134.500
Total all claims 431.000
2 Distribution of available cash:
1st Mortgage holders (100%) 228.500
2nd Administrative exp (100%) 12.500
3rd Employees (up to $4.000 each) (100%) 47.000
4th Customers for merchandise not delivered (100%) 1.500
5th State government (100%) 7.000
Local government (100%) 4.000
6th Merchandise creditors (99.000x0,6) 59.400
Local bank for loan principal (30.000x0,6) 18.000
Company president (1.000x0,6) 600
Total distributed 378.500
3
P18-4
1 Hanna Corporation
Statement of Affairs
June 30, 2011
Assets:
Realizable Values- Realizable Value
Liability Offsets Available for
Book for Secured Unsecured
Value Creditors Creditors
Pledged for partially secured creditors:
55.000 Equipment-net 28.000
Less: Mortgage note payable and accrued interest - 31.000 -
Unsecured creditors:
26.400 Account payable 26.400
7.600 Rent payable 7.600
Stockholders' equity:
55.000 Capital stock
- 39.800 Retained earnings (deficit)
92.200 37.000
Unsecured priority:
Administrative exp 4.000
Wages payable 12.000 16.000
Unsecured non-priority:
Accounts payable (26.000x0,6) 15.840
Rent payable (7.600x0,6) 4.560 20.400
Total payments 66.200
4
P18-5
1 Dawn Corporation
Statement of Affairs
July 10, 2011
Assets:
Realizable Values- Realizable Value
Liability Offsets Available for
Book for Secured Unsecured
Value Creditors Creditors
Fully secured:
210.000 Account receivable-net 160.000
Less: Notes payable 100.000 60.000
Partially secured:
250.000 Land and building-net 140.000
Less: Mortgage and interest payable 205.000 -
Unsecured:
80.000 Cash 80.000
200.000 Inventories 210.000
150.000 Equipment-net 60.000
10.000 Intangible assets -
Available for priority and unsecured 410.000
Priority liabilities 150.000
Available for nonpriority and unsecured 260.000
Estimated deficiency 155.000
900.000 415.000
Equities:
Book Secured and Unsecured Non-
Value Priority Claims prior Claims
Priority liabilities:
50.000 Accounts payable 50.000
24.000 Wages payable 24.000
76.000 Taxes payable 76.000
150.000
Fully secured:
100.000 Note payable 100.000
Less: Accounts receivable-net 160.000
- 60.000
Partially secured:
205.000 Mortgage and interest payable 205.000
Less: Land and buildings-net 140.000
65.000 65.000
Unsecured:
350.000 Accounts payable 350.000
300.000 Capital stock
- 205.000 Retained earnings (deficit)
900.000 415.000
5
2
Claims by Priority Amounts to Be Amounts to Be
Ranks Paid Written Off
Priority claims
Admin exp 11.000 11.000
A/P 50.000 50.000
Wages payable 24.000 24.000
Taxes payable 76.000 76.000
Fully secured claims
Note payable 100.000 100.000
Partially secured claims
Mortgage and interest payable 205.000 140.000 26.000
39.000
Unsecured
A/P 350.000 210.000 140.000
816.000 650.000 166.000
Unsecured claims:
Partially secured 65.000
Account payable-nonprior 350.000
B Total unsecured claims 415.000
6
P18-6
1 Everlast Window Corporation
Statement of Affairs
June 30, 2011
Assets:
Realizable Value
Realizable Values- Available for
Book Liability Offsets for Unsecured
Value Secured Creditors Creditors
Pledged for fully secured creditors:
230.000 Land and building 170.000
Less: Mortgage note payable and accrued interest - 165.000 5.000
Stockholders' equity:
200.000 Capital stock
- 100.000 Retained earnings (deficit)
500.000 165.000
2 Settlement per dollar of rank 1 unsecured creditors is $0,6250. No payment is made for the $5.000 unsecured
interest claim.