Please help me to solve this problem The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which thecompany is to file a voluntary petition of bankruptcy:CashAccounts receivable (net)InventoryLandBuildings (net)Equipment (net)Total assetsLIMESTONE COMPANYBalance SheetJune 3, 2020AssetsLiabilities and EquitiesAccounts payableNotes payable-current (secured by equipment)Notes payable-long-term (secured by land and buildings)Common stockRetained earnings.Total liabilities and equities13,00086,000130,000121,000321,000222,000$893,000$$ 140,000292,000211,000141,000109,000$ 893,000Additional Information• If the company is liquidated, administrative expenses are estimated at $39,000.• The accounts payable figure includes $31,000 in wages earned by the company's 12 employees during May. No one earned morethan $4,300.• Liabilities do not include taxes of $35,000 owed to the U.S. government.• Company officials estimate that 30 percent of the accounts receivable will be collected in a liquidation and that the inventorydisposal will bring $101,000. The land and buildings will be sold together for approximately $352,000; the equipment should bring$151,000 at auction.Prepare a statement of financial affairs for Limestone Company as of June 3, 2020. BookValuesLIMESTONE COMPANYStatement of Financial AffairsJune 3, 2020$ 442,000 Land and buildings$ 893,000BookValuesPledged with Fully Secured Creditors:222,000 Equipment$ 31,00000AssetsLess: Notes payable-long termPledged with Partially Secured Creditors:13,00086,000 Accounts receivable130,000✔ Inventory0Less: Notes payable-currentFree Assets:CashTotal amount available to pay liabilitieswith priority and unsecured creditorsLess: Liabilities with priorityAvailable for unsecured creditorsEstimated deficiencyLiabilities and Stockholders' EquityLiabilities with Priority:Administrative expensesSalaries payableTaxes payableTotalFully Secured Creditors:211,000✔ Notes payable-long termLess: Land and buildingsPartially Secured Creditors:292,000✔ Notes payable currentLess: EquipmentUnsecured Creditors:109,000✔ Accounts payable250,000 Stockholders' equity893,000✓$ 352,000✔✓›› › › ›✓✓✓✓› › ›✓$✓››››✓3211,000 $ 141,000151,000 ✓292,000✔39,000✔31,000 ✓35,000✔$ 105,000AvailableforUnsecuredCreditors211,000✔352,000✔013,000✔25,800✔101,000✔$280,800(105,000)✓$ 175,800(53,200) X122,600UnsecuredNonpriorityLiabilities0✓292,000✔151,000 $ 141,000109,000✔00✓250,000

Liquidation - The voluntary creditor's procedure and the voluntary member's process are two subtypes…

The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy: Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) $ 13,000 86,000 130,000 121,000 321,000 222,000 $ 893,000 $ 140,000 292,000

The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy: Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) $ 13,000 86,000 130,000 121,000 321,000 222,000 $ 893,000 $ 140,000 292,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9PA: Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables....

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