Realization and Liquidation Account L01A balance sheet for Bran Company on June 30, 2012, the date Jim Brown was appointedtrustee, is presented here:PROBLEM 10-4Bran Company Balance SheetJune 30, 2012Cash$ 15,000$ 45,0006,000Accounts ReceivableLess: Allowance for Uncollectibles39,000InventoryPlant and EquipmentLess: Accumulated DepreciationTotal Assets104,000215.00070,000145,000$303.000Accounts PayableCommon Stock$145,000Retained Earnings (deficit)Total Liabilities and Equities225,000(67,000)$303.000The following information concerning the period from June 30, 2012, to December 31, 2012,is also available:1. All Bran Company's assets were transferred to the trustee.2. Sales for the period were $130,000, of which $30,000 were cash sales.3. Receivables collected by the trustee in cash were:Old receivables$38,000New receivables85,0004. Merchandise inventory was purchased on account by the trustee in the amount of$35,000.5. Cash payments were made by the trustee for:(a) Accounts payable (old), $110,000(b) Accounts payable (new), $30,000(c) Operating expenses, $47,000(d) Trustee expense, $2,0006. Adjusting entries recorded by the trustee on December 31, 2009, were:(a) Estimated uncollectiblesAccounts receivable (old)$ 1,000Accounts receivable (new)2,000(b) Accounts receivable written off (old), $7,000(c) Depreciation expense, $10,0007. The merchandise inventory balance on December 31 was $75,000.8. The plant and equipment included a parcel of land and a piece of equipment, both ofwhich were sold by the trustee for cash. The land cost $14,000 and was sold for $25,000.The equipment, which had a book value of $25,000 (cost, $50,000; accumulated depreci-ation, $25,000), was sold for $13,000.Required:Prepare a realization and liquidation account, including a copy of the cash account, for theperiod June 30, 2012, to December 31, 2012. Use the alternate approach for reportingthe components of the net gain or loss on the sale of land and equipment.

During a company's liquidation process, transactions and other events are summarised in a financial…

A balance sheet for Bran Company on June 30, 2012, the date Jim Brown was appointed trustee, is presented here: Bran Company Balance Sheet June 30, 2012 Cash Accounts Receivable Less: Allowance for Uncollectibles Inventory Plant and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Common Stock Retained Earnings (deficit) Total Liabilities and Equities $ 45,000 6,000 215,000 70,000 $ 15,000 39,000 104,000 145,000 $303.000 $145,000 225,000 (67,000) $303.000 The following information concerning the period from June 30, 2012, to December 31, 2012, is also available: 1. All Bran Company's assets were transferred to the trustee.

A balance sheet for Bran Company on June 30, 2012, the date Jim Brown was appointed trustee, is presented here: Bran Company Balance Sheet June 30, 2012 Cash Accounts Receivable Less: Allowance for Uncollectibles Inventory Plant and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Common Stock Retained Earnings (deficit) Total Liabilities and Equities $ 45,000 6,000 215,000 70,000 $ 15,000 39,000 104,000 145,000 $303.000 $145,000 225,000 (67,000) $303.000 The following information concerning the period from June 30, 2012, to December 31, 2012, is also available: 1. All Bran Company's assets were transferred to the trustee.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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