ANS:

Figure 21-A
Mallory Corporation
Statement of Realization and Liquidation
For the Three Months Ended July 31, 20X5

Assets

Assets Cash Non-Cash

Beginning balances assigned 5/1/X5 $ 4,000 $720,000
Cash Receipts:
Collection of Accounts Receivable 60,000 (70,000)
Sale of inventory 170,000 (200,000)
Sale of land and building 20,000 (340,000)
Sale of machinery 70,000 (100,000)
Cash Disbursements:
Payment of salaries payable (60,000)
Partial payment of accounts pay. (170,000)
Partial payment of bank loan (70,000)
Ending balance $24,000 $ 10,000

(continued)

Liabilities
Unsecured
Fully Partially With Without Owner's
Assets Secured Secured Priority Priority Equity
Beginning balances assigned 5/1/X5 $240,000 $270,000 $94,000 $ 0 $120,000
Cash Receipts:
Collection of Accounts Receivable (10,000)
Sale of inventory (30,000)
Sale of land and building (240,000) (80,000)
Sale of machinery (30,000)
Cash Disbursements:
Payment of salaries payable (60,000)
Partial payment of accounts pay (180,000) 10,000
Partial payment of bank loan (90,000) 20,000
Ending balance $ $ $ $ $34,000 $30,000 $

DIF: D OBJ: 21-5

21-1
ESSAY

21-2