Statement of Realization and Liquidation
A trustee has been appointed for Pace Inc., which is being liquidated under Chapter 7 of the Bankruptcy Code. The following transactions occurred after the assets were transferred to the trustee:
1. Sales on account by the trustee were $75,000. Cost of goods sold were $60,000, consisting of all the inventory transferred from Pace.
2. The trustee sold all $12,000 worth of marketable securities for $10,500.
3. Receivables collected by the trustee:
Old: | $21,000 of the $38,000 transferred |
New: | $47,000 |
4. Recorded $16,000 depreciation on the plant assets of $96,000 transferred from Pace.
5. Disbursements by the trustee:
Old current payables: | $22,000 of the $48,000 transferred |
Trustee’s expenses: | $4,300 |
Required
Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.
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