Special Transaction
Special Transaction
Smith Company
Statement of Realization and Liquidation
Mallory Corporation
Statement of Realization and Liquidation
For the Three Months Ended July 31, 20X5
Assets
Assets Cash Non-Cash
Beginning balances assigned 5/1/X5 4,000 720,000
Cash Receipts
Collections of Accounts Receivable 60,000 (70,000)
Sale of Inventory 170,000 (200,000)
Sale of Land and Building 20,000 (340,000)
Sale of Machinery 70,000 (100,000)
Cash Disbursements
Payment of salaries payable (60,000)
Partial payment of accounts pay (170,000)
Partial payment of bank loan (70,000)
Ending balance 24,000 10,000
Liabilities
Unsecured
Fully Partially With Without Owner's
Assets Pledged Secured Priority Priority Equity
Beginning balances assigned 240,000 270,000 94,000 0 120,000
Cash Receipts:
Collections of Accounts (10,000)
Sale of Inventory (30,000)
Sale of Land and Building (240,000) (80,000)
Sale of Machinery (30,000)
Cash Disbursements
Payment of salaries payable (60,000)
Partial payment of accounts pay (180,000) 10,000
Partial payment of bank loan (90,000) 20,000
Ending balance 0 0 34,000 30,000 (30,000)
Partially Secured
Accounts Payable 180,000
Bank Loan Payable 90,000
270,000
With Priority
Salaries Payable 60,000
Income Tax Payable 14,000
Trustee's Fee Payable 20,000
94,000
Owners Equity
Total Assets 724,000
Total Liabilities (604,000)
120,000
Sale of Inventory
Inventories 200,000
Proceeds (170,000)
Loss to be absorbed by OE 30,000
Sale of Machinery
Machinery 100,000
Proceeds -70,000
Loss to be absorbed by OE 30,000