BEGINNING BALANCE

CASH 6,400

ACCOUNTS RECEIVABLE 32,000

INVENTORY 48,600
PROPERTY & EQUIPMENT 120,000
TOTAL ASSETS 207,000

ALLOWANCE FOR UNCOLLECTIBLE 2,900

ACCUMULATED DEPRECIATION 44,100
ACCOUNTS PAYABLE 75,000
CAPITAL STOCK 180,000
RETAINED EARNING (95,000)
TOTAL LIABILITIES & EQUITIES 207,000
A. JOURNAL
PQR - TRUSTEE

1. ALL ABC COMPANY'S ASSETS WERE TRANSFEREED TO THE TRUSTEE

CASH 6,400
ACCOUNTS RECEIVABLE (OLD) 32,000
INVENTORY 48,600
Property & Equipment 120,000
ALLOWANCE FOR UNCOLECCTIBLE (OLD)
ACCUMULATED DEPRECIATION -
ABC COMPANY IN RECEIVERSHIP -

2. ADDITIONAL MERCHANDISE INVENTORY WAS PURCHASED BY TRUSTEE ON ACCOUNTS

PURCHASE 26,000
ACCOUNTS PAYABLE (NEW)

3. SALES FOR THE PERIOD

ACCOUNTS RECEIVABLE (NEW) 52,000
CASH 7,000
SALES -

4. COLLECTION CASH ON OLD RECEIVABLE AND NEW RECEIVABLE

CASH 64,000
ACCOUNTS RECIVABLE (OLD) -
ACCOUNTS RECIVABLE (NEW) -

5. PAYMENT OF OPERATING EXPENSES AND TRUSTEE EXPENSES

OPERATING EXPENSES 10,500
TRUSTEE EXPENSES 2,000
CASH -
ABC COMPANY IN RECEIVERSHIP 43,000
ACCOUNTS PAYABLE (NEW) 14,000
 CASH -

6 WRITING OFF ACCOUNTS RECEIVABLE (OLD)

ALLOWANCE FOR UNCOLECTIBLE (OLD) 4,500
ACCOUNTS RECEIVABLE (OLD) -
DEPRECIATION EXPENSES 7,000
ACCUMULATED DEPRECIATION -
BAD DEBT EXPENSES 3,900
ALLOWANCE FOR UNCOLECTIBLE (OLD) -
ALLOWANCE FOR UNCOLECTIBLE (NEW) -

CLOSING ENTRIES
A. CLOSING REVENUE & EXPENSES (ENDING INVENTORIES $ 42,000)
SALES 59,000
INVENTORY
PURCHASE -
OPERATING EXPENSES -
TRUSTEE EXPENSES -
BAD DEBT EXPENSES -
DEPRECIATION EXPENSE
INCOME SUMMARY -

B. CLOSING INCOME SUMMARY BALANCE

INCOME SUMMARY 3,000
ABC COMPANY IN RECEIVERSHIP -
 Alfa - COMPANY

1. ALL ABC COMPANY'S ASSETS WERE TRANSFEREED TO

- ALLOWANCE FOR UNCOLECCTIBLE (OLD)
- ACCUMULATED DEPRECIATION
- PQR - TRUSTEE

2,900
44,100
160,000

2. NO ENTRY

26,000

3. NO ENTRY
-
-
59,000

4. NO ENTRY
-
18,000
46,000

5. NO ENTRY
-
- 6. ACCOUNTS PAYABLE
12,500
-
- CLOSING ENTRIES
57,000 A. NO ENTRY

-
4,500
-
7,000
-
3,500
400
B. PQR - TRUSTEE

- INCOME SUMMARY
6,600
26,000
10,500
2,000
3,900
7,000
3,000

-
3,000
 Alfa - COMPANY

ALL ABC COMPANY'S ASSETS WERE TRANSFEREED TO THE TRUSTEE

ALLOWANCE FOR UNCOLECCTIBLE (OLD) 2,900 -
ACCUMULATED DEPRECIATION 44,100 -
PQR - TRUSTEE 160,000 -
CASH - 6,400
ACCOUNTS RECEIVABLE (OLD) - 32,000
INVENTORY - 48,600
PROPERTY & PLANT - 120,000

NO ENTRY

NO ENTRY

NO ENTRY

NO ENTRY

ACCOUNTS PAYABLE 43,000 -

PQR - TRUSTEE - 43,000

ING ENTRIES
NO ENTRY

PQR - TRUSTEE 3,000 -

INCOME SUMMARY - 3,000

INCOME SUMMARY 3,000 -

RETAINED EARNING - 3,000
B. COMBINING WORKPAPER

TRIAL BALANCE

ACCOUNTS
PQR - TRUSTEE Alfa COMPANY
DEBITS
CASH 7,900
ACCOUNTS RECEIVABLE (OLD) 9,500
ACCOUNTS RECEIVABLE (NEW) 6,000
INVENTORY 48,600
PROPERTY & PLANT 120,000
PURCHASE 26,000
OPERATING EXPENSES 10,500

TRUSTEE EXPENSES 2,000

COST OF GOODS SOLD
BAD DEBT EXPENSES 3,900
DEPRECIATION EXPENSES 7,000
PQR - TRUSTEE 117,000

TOTAL 241,400 117,000

CREDITS
ACCOUNTS PAYABLE (OLD) 32,000
ACCOUNTS PAYABLE (NEW) 12,000
ALLOWANCE FOR UNCOLECCTIBLE (OLD) 1,900
ALLOWANCE FOR UNCOLECCTIBLE (NEW) 400
ACCUMULATED DEPRECIATION 51,100
CAPITAL STOCK 180,000
RETAINED EARNING (95,000)
ABC COMPANY IN RECEIVERSHIP 117,000
SALES 59,000

TOTAL 241,400 117,000

NET INCOME
TOTAL
 ADJUSTMENT AND COMBINED STATEMENTS

ELIMINATIONS INCOME STATEMENT OF

DEBIT CREDIT STATEMENT FINANCIAL POSITION

7,900
9,500
6,000
6,600 42,000
120,000
26,000
10,500

2,000
32,600 32,600
3,900
7,000
117,000 -

56,000 185,400

32,000
12,000
1,900
400
51,100
180,000
(95,000)
117,000 -
59,000

149,600 149,600 59,000

3,000 3,000
56,000 185,400