The balance sheet of Maple Leaf Company at February 1, 2023, is as follows: ...
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Accounting
The balance sheet of Maple Leaf Company at February 1, 2023, is as follows:
All liabilities are unsecured. On February 1, 2023, Maple Leaf Co. enters Chapter 7 bankruptcy proceedings. During the next two months, the following transactions were completed:
1. Received $125 from customers in payment of reported receivables. The rest of the receivables were determined to be uncollectible.
2. Sold all merchandise for $300 in cash.
3. Sold plant and equipment with a book value of $1,800 for $1,600.
4. Accrued trustee expenses of $10.
5. Paid $2,000 of loans.
Prepare a statement of realization and liquidation for the two-month period.
\begin{tabular}{|l|r|l|c|} \hline Cash & $20 & Loans payable & $2,670 \\ \hline Accounts receivable & 150 & Shareholders' equity & (150) \\ \hline Merchandise & 350 & & \\ \hline Plant and equipment, net & 2,000 & & \\ \hline & $2,520 & & $2,520 \\ \hline \end{tabular}
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