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 $75,900. Cost of goods sold were $60,600, consisting of all inventory transferred from Pace. 2. The trustee sold all $12,700 worth of marketable securities for $9,600. 3. Receivables collected by the trustee: old: New: $19,600 of the $40,000 transferred $46,500 4. Depreciation of $15,900 on the plant assets of $96,300 transferred from Pace were recorded. 5. Disbursements by the trustee: Old current payables: Trustee's expenses: Required: $23,200 of the $49,800 transferred $5,600 Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter. PACE CORPORATION Statement of Realization and Liquidation
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 $75,900. Cost of goods sold were $60,600, consisting of all inventory transferred from Pace. 2. The trustee sold all $12,700 worth of marketable securities for $9,600. 3. Receivables collected by the trustee: old: New: $19,600 of the $40,000 transferred $46,500 4. Depreciation of $15,900 on the plant assets of $96,300 transferred from Pace were recorded. 5. Disbursements by the trustee: Old current payables: Trustee's expenses: Required: $23,200 of the $49,800 transferred $5,600 Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter. PACE CORPORATION Statement of Realization and Liquidation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $75,900. Cost of goods sold were $60,600, consisting of all inventory transferred from Pace.
2. The trustee sold all $12,700 worth of marketable securities for $9,600.
3. Receivables collected by the trustee:
old:
New:
$19,600 of the $40,000 transferred
$46,500
4. Depreciation of $15,900 on the plant assets of $96,300 transferred from Pace were recorded.
5. Disbursements by the trustee:
Old current payables:
Trustee's expenses:
Required:
$23,200 of the $49,800 transferred
$5,600
Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.
PACE CORPORATION
Statement of Realization and Liquidation
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