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  • Smith Company Statement of Realization and Liquidation

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    The document is a statement of realization and liquidation for Smith Company for the three months ended July 31, 20x5. It shows the company liquidated assets, collecting $60,000 of accounts receivable and $170,000 from inventory sales. It used the funds to pay salaries of $60,000 and partially pay down accounts payable and a bank loan. Liabilities were reduced but $34,000 remained with priority and $30,000 without priority. The process resulted in a $30,000 loss to owner's equity.

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    The document is a statement of realization and liquidation for Smith Company for the three months ended July 31, 20x5. It shows the company liquidated assets, collecting $60,000 of accounts receivable and $170,000 from inventory sales. It used the funds to pay salaries of $60,000 and partially pay down accounts payable and a bank loan. Liabilities were reduced but $34,000 remained with priority and $30,000 without priority. The process resulted in a $30,000 loss to owner's equity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    73 views5 pages

    Smith Company Statement of Realization and Liquidation

    Uploaded by

    TRCLN
    The document is a statement of realization and liquidation for Smith Company for the three months ended July 31, 20x5. It shows the company liquidated assets, collecting $60,000 of accounts receivable and $170,000 from inventory sales. It used the funds to pay salaries of $60,000 and partially pay down accounts payable and a bank loan. Liabilities were reduced but $34,000 remained with priority and $30,000 without priority. The process resulted in a $30,000 loss to owner's equity.

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    © All Rights Reserved
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    of 5

    Ma. Theresa A.

    Aclan AST 8:00-9:00 MWF


    45022 August 31, 2021

    Smith Company
    Statement of Realization and Liquidation

    ASSETS
    Assets to be Realized Assets Realized
    Old Receivables,net 50,000.00 Old Receivables 28,000.00
    Marketable Securities 20,000.00 New Receivable 65,000.00
    Old Inventory 72,000.00 Marketable Securities 15,000.00
    Depreciable Assets,net 120,000.00 Sales of Inventory 100,000.00

    Assets Acquired Assets not Realized


    New Receivable 100,000.00 Old Receivables,net 22,000.00
    New Receivable,net 35,000.00
    Depreciable Assets 96,000.00

    LIABILITIES
    Liabilities Liquidated Liabilities to be Liquidated
    Old Current Payables 31,000.00 Old Current Payables 65,000.00

    Liabilities not Liquidated Liabilities Incurred


    Old Current Payables 34,000.00

    SUPPLEMENTARY ITEMS
    Supplementary Expenses Supplementary Credits
    Truster's Fee 6,000.00 Net Loss 7,000.00
    _____________ _________________
    433,000.00 433,000.00
    Statement of Realization and Liquidation
    For the Three Months Ended July 31, 20x5

    Assets
    Assets Cash Non-Cash
    Beginning balances assigned 5/1/X5 4,000.00 720,000.00
    Cash Receipts
    Collection of Accounts Receivable 60,000.00 -70,000.00
    Sale of Inventory 170,000.00 -200,000.00
    Sale of Land and Building 20,000.00 -340,000.00
    Sale of Machinery 70,000.00 -100,000.00

    Cash Disbursements
    Payment of Salaries Payable -60,000.00
    Partial Payment of Accounts Payable -170,000.00
    Partial Payment of Bank Loan -70,000.00

    ENDING BALANCE 24,000.00 10,000.00


    Liabilities
    Un
    sec
    ure
    Assets Fully Secured Partially With Priority Without Owner's
    Secured Priority Equity
    Beginning Balance Assigned 240,000.00 270,000.00 94,000.00 0 120,000.00
    Cash Receipts
    Collection of Accounts Receivable -10,000.00
    Sale of Inventory -30,000.00
    Sale of Land and Building -240,000.00 -80,000.00
    Sale of Machinery -30,000.00

    Cash Disbursements
    Payment of Salaries Payable -60,000.00
    Partial Payment of Accounts Pay -180,000.00 10,000.00
    Partial Payment of Bank Loan -90,000.00 20,000.00

    ENDING BALANCE - - 34,000.00 30,000.00 -30,000.00


    Statement of Realization and Liquidation
    For the Three Months Ended July 31, 20x5
    Assets
    Assets Cash Non-Cash
    Beginning balances assigned 5/1/X5 4,000.00 720,000.00
    Cash Receipts
    Collection of Accounts Receivable 60,000.00 -70,000.00
    Sale of Inventory 170,000.00 -200,000.00
    Sale of Land and Building 20,000.00 -340,000.00
    Sale of Machinery 70,000.00 -100,000.00

    Cash Disbursements
    Payment of Salaries Payable -60,000.00
    Partial Payment of Accounts Payable -170,000.00
    Partial Payment of Bank Loan -70,000.00

    ENDING BALANCE 24,000.00 10,000.00


    Liabilities
    se
    cu
    Partially Without
    Assets Fully Secured Secured With Priority Priority Owner's Equity

    Beginning Balance Assigned 240,000.00 270,000.00 94,000.00 0 120,000.00


    Cash Receipts
    Collection of Accounts Receivable -10,000.00
    Sale of Inventory -30,000.00
    Sale of Land and Building -240,000.00 -80,000.00
    Sale of Machinery -30,000.00

    Cash Disbursements
    Payment of Salaries Payable -60,000.00
    Partial Payment of Accounts Payable -180,000.00 10,000.00
    Partial Payment of Bank Loan -90,000.00 20,000.00

    ENDING BALANCE - - 34,000.00 30,000.00 -30,000.00

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