The following post-closing trial balance has been prepared for Harper Corporation as of September 30, 20X4:
Notes receivable and accrued interest on these notes are expected to realize their book values.
Accounts receivable are expected to realize $45,000. The accounts receivable have been pledged to secure a note payable for $30,000 and accrued interest expense of $2,400.
Inventories will realize approximately 60% of their book value.
A real estate agent believes that the land and building and equipment could be sold for $150,000. The holder of a note payable of $69,000, with accrued interest thereon of $3,600, has a lien against the property for the full amount due.
All salaries qualify for priority.
Required:
a.
Prepare an accounting statement of affairs, for which the accountant's fee will be $2,000.
b.
Compute the dividend for the Class 7 unsecured creditors.

Question

The following post-closing trial balance has been prepared for Harper Corporation as of September 30, 20X4:
  Notes receivable and accrued interest on these notes are expected to realize their book values.
Accounts receivable are expected to realize $45,000. The accounts receivable have been pledged to secure a note payable for $30,000 and accrued interest expense of $2,400.
Inventories will realize approximately 60% of their book value.
A real estate agent believes that the land and building and equipment could be sold for $150,000. The holder of a note payable of $69,000, with accrued interest thereon of $3,600, has a lien against the property for the full amount due.
All salaries qualify for priority.
Required: 
a.
Prepare an accounting statement of affairs, for which the accountant's fee will be $2,000.
b.
Compute the dividend for the Class 7 unsecured creditors.

Quizplus · Accepted Answer

The Answer of The following post-closing trial balance has been prepared for Harper Corporation as of September 30, 20X4:
  Notes receivable and accrued interest on these notes are expected to realize their book values.
Accounts receivable are expected to realize $45,000. The accounts receivable have been pledged to secure a note payable for $30,000 and accrued interest expense of $2,400.
Inventories will realize approximately 60% of their book value.
A real estate agent believes that the land and building and equipment could be sold for $150,000. The holder of a note payable of $69,000, with accrued interest thereon of $3,600, has a lien against the property for the full amount due.
All salaries qualify for priority.
Required: 
a.
Prepare an accounting statement of affairs, for which the accountant's fee will be $2,000.
b.
Compute the dividend for the Class 7 unsecured creditors.

The Following Post-Closing Trial Balance Has Been Prepared for Harper