Charles Company has been in receivership for the past five months. At the beginning of...
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Charles Company has been in receivership for the past five months. At the beginning of the period, the following trial balance was taken from the company's books: Cash Accounts Receivable inventory Property and equipment 9,000 30,000 285,300 199,200 505,500 Allowance for uncollectibles Accumulated Depreciation Accounts Payable Capital Stock Retained Earnings 7,500 (estimated uncolellctibles) 73,650 286,350 270,000 -132,000 505,500 The trustee who was appointed to manage the busniess on June 1 reports the following information on October 31, 2012: 1. All inventory of Charles was sold for $306,000 of which $150,000 represented credit sales. 2. Cash was collected on old receivables, $22,500, and on new receivables $129,000. 3. Expenses during the period were : Operating Exp of $23,700 and trustee Exp of $6,000 4. The trustee recorded depreciation expense of $10,500. 5. Estimated uncollectibles on the new AR were $4,500 and all the remaining old AR were written off. 6. The trustee paid off all the Accounts Payable. 7. All the Property and Equipment was sold for $87,000. Required: 1. Prepare the statement of liquidation and realization. 2. Give the breakup of the net loss reprted in the statement
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