Dividend

DIF: D OBJ: 21-4

9. Using the information from Dremer Corporation and the following information, prepare a Statement
of Realization and Liquidation for Dremer Inc. for the period of 6/1/X5 to 6/30/X5.

No subsequent discoveries
Sale of Calandir Securities at a market value of $16,000
Collection of Note Receivable into cash $15,000
Sale of Equipment at $7,000
Sale of Inventory at $22,000
Partial Payment of Accounts Payable $29,000
Payment of Note Payable $10,375

ANS:
Dremer Corporation
Statement of Realization and Liquidation
For the period 6/1/X5 to 6/30/X5

Liabilities
Unsecured
Assets Fully Partial With Without Owners'
Cash Noncash Secure Secure Priority Priority Equity
6/1/X5 Balances:
1,850 224,500 80,975 50,000 3,775 50,625 40,975

Cash Receipts:
Securities Sale 16,000 (5,800) 10,200
N/R Collected 15,000 (15,000) 0
Equipment Sale 7,000 (43,000) (36,000)
Inventory Sale 22,000 (41,000) (19,000)

Cash Disbursements:
Bank Loan (10,375) (10,375)
Part Pyt-A/P (29,000) (50,000) 21,000
6/30 Balance 22,475 119,700 70,600 0 3,775 71,625 (3,825)

DIF: D OBJ: 21-5

10. The following post-closing trial balance has been prepared for Harper Corporation as of September 30,
20X4:

Cash-overdraft 18,000
Notes receivable 6,000
Accrued interest receivable 900
Accounts receivable 66,000
Allowance for uncollectible accounts 9,000
Inventories 90,000
Land 54,000
Plant and equipment 321,000
Accumulated depreciation 201,000

21-1
Notes payable 105,000

ANS:

21-2