PROBLEM 1

Smith Company
Statement of Realization and Liquidation

ASSETS
Assets to be Realized Assets Realized
Accounts Receivable 50,000 Accounts Receivable 28,000
Marketable Securities 20,000 Accounts Receivable 65,000
Inventory 72,000 Marketable Securities 15,000
Depreciable Plant Assets 120,000 Sales 100,000

Assets Acquired Assets Not Realized

Accounts Receivable 100,000 Accounts Receivable 22,000
Accounts Receivable 35,000
Depreciable Plant Assets 96,000
LIABILITIES
Liabilities Liquidated Liabilities to be Liquidated
Accounts Payable 31,000 Accounts Payable 65,000

Liabilities not Liquidated Liabilities Incurred

Accounts Payable 34,000

SUPPLEMENTARY ITEMS
Trustees Expense 6,000 Net Loss during the Period 7,000
433,000 433,000

PROBLEM 2

Mallory Corporation
Statement of Realization and Liquidation
For the Three Months Ended July 31, 20x5

Assets
Assets Cash Non-Cash
Beginning balance 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 Payable (170,000)
Partial Payment of Bank Loan (70,000)
Ending Balance 24,000 10,000
 Liabilities
Unsecured
Fully Partially Without Owner's
Assets
Secured Secured With Priority Priority Equity
Beginning Balances Assigned 240,000 270,000 94,000 120,000
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 Payable (180,000) 10,000
Partial Payment of Bank Loan (90,000) 20,000
Ending Balance 34,000 30,000 (30,000)