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A trustee has been appointed for Pace Incorporated, which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee: 1. Sales on account by the trustee were $76,300. Cost of goods sold were $61,000, consisting of all Inventory transferred from Pace. 2. The trustee sold all $13,600 worth of marketable securities for $9,800. 3. Receivables collected by the trustee: old: New: $19,100 of the $39,500 transferred $45,600 4. Depreciation of $16,000 on the plant assets of $97,000 transferred from Pace were recorded. 5. Disbursements by the trustee: Old current payables: Trustee's expenses: $23,000 of the $49,300 transferred $5,800 Required: Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.

A trustee has been appointed for Pace Incorporated, which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee: 1. Sales on account by the trustee were $76,300. Cost of goods sold were $61,000, consisting of all Inventory transferred from Pace. 2. The trustee sold all $13,600 worth of marketable securities for $9,800. 3. Receivables collected by the trustee: old: New: $19,100 of the $39,500 transferred $45,600 4. Depreciation of $16,000 on the plant assets of $97,000 transferred from Pace were recorded. 5. Disbursements by the trustee: Old current payables: Trustee's expenses: $23,000 of the $49,300 transferred $5,800 Required: Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A trustee has been appointed for Pace Incorporated, which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee: 1. Sales on account by the trustee were $76,300. Cost of goods sold were $61,000, consisting of all inventory transferred from Pace. 2. The trustee sold all $13,600 worth of marketable securities for $9,800. 3. Receivables collected by the trustee: old: New: $19,100 of the $39,500 transferred $45,600 4. Depreciation of $16,000 on the plant assets of $97,000 transferred from Pace were recorded. 5. Disbursements by the trustee: old current payables: Trustee's expenses: $23,000 of the $49,300 transferred $5,800 Required: Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.
Transcribed Image Text:A trustee has been appointed for Pace Incorporated, which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee: 1. Sales on account by the trustee were $76,300. Cost of goods sold were $61,000, consisting of all inventory transferred from Pace. 2. The trustee sold all $13,600 worth of marketable securities for $9,800. 3. Receivables collected by the trustee: old: New: $19,100 of the $39,500 transferred $45,600 4. Depreciation of $16,000 on the plant assets of $97,000 transferred from Pace were recorded. 5. Disbursements by the trustee: old current payables: Trustee's expenses: $23,000 of the $49,300 transferred $5,800 Required: Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.
A trustee has been appointed for Pace Incorporated, which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee: 1. Sales on account by the trustee were $76,300. Cost of goods sold were $61,000, consisting of all inventory transferred from Pace. 2. The trustee sold all $13,600 worth of marketable securities for $9,800. 3. Receivables collected by the trustee: old: New: $19,100 of the $39,500 transferred $45,600 4. Depreciation of $16,000 on the plant assets of $97,000 transferred from Pace were recorded. 5. Disbursements by the trustee: old current payables: Trustee's expenses: $23,000 of the $49,300 transferred $5,800 Required: Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.
Transcribed Image Text:A trustee has been appointed for Pace Incorporated, which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee: 1. Sales on account by the trustee were $76,300. Cost of goods sold were $61,000, consisting of all inventory transferred from Pace. 2. The trustee sold all $13,600 worth of marketable securities for $9,800. 3. Receivables collected by the trustee: old: New: $19,100 of the $39,500 transferred $45,600 4. Depreciation of $16,000 on the plant assets of $97,000 transferred from Pace were recorded. 5. Disbursements by the trustee: old current payables: Trustee's expenses: $23,000 of the $49,300 transferred $5,800 Required: Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.
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