Question

The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company is to file a voluntary petition of bankruptcy: LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities $ 6, eee 68, eee 94, 103, eee 303, mee 186, we $760, mee $ 104,000 256,000 193, eee 123, eee 84, eee $ 769, eee Additional Information . If the company is liquidated, administrative expenses are estimated at $21,000. • The accounts payable figure includes $13,000 In wages earned by the company's 12 employees during May. No one earned more than $2,500. • Liabilities do not include taxes of $17,000 owed to the U.S. government Company officials estimate that 40 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $83,000. The land and buildings will be sold together for approximately $316,000, the equipment should bring $133,000 at auction

Answer 1

Anscoer Skabemen arie hai oa June 3,01 tA Boot value ofland bading (03000 303000 406000 Book value equipment 186000 Accounts 0eceivakles available for uncuned Crectos =$68000X 407 200 Inventory avatlable ouneud credios= $8 3000 1 5000 Accoonk payable (ethen than salamits - 4 t04000-1300o 91000

NO Available fox Boot value Anseh unscewrikd cyedito eledged tly od ced 406000Land bal dingy Notes payable long benm 316000 193000 3000 Pladged ith ialye 186000 Fuipment 133000 Nober payaie-Cuert free arsebs 256 00 Carh G000 s6O0O 68000 Account receivables 700 94 000Tnvenbory 83000 Tobal amount aualable bo pay tiakilitisusitk priovil 239200 unccured Ereditors iahilits sith priority (451000) Avail able for oneced creolihor 188200 Esimated difficicncy 45800 60,000 a14000

-No (3) Book value iabillicsockhelaens cqui non priorily liabi Aiabitbties ilt pion Adiminiatative expenas 13000Salarics payable $13000 Tards payable $1000 Tazes 51000 fallycwed ditor 3000 Nobes pable Land balding 19300 O 316000 fantially Secured edibor3 $56000 Note paable CwUrent 56000 $ 133000 j23000 Equipment onscued Creditor $91000 Accoonb payable (othen than Sah 1000tockholdens cui lg $760,000 $91000 p14000