As of June 30, 20X4, the Lillie Corporation has the following assets, liabilities, and owners' equity:
The following is provided:
Marketable securities have a market value of $24,000. Accounts receivable are estimated to produce $30,000. The sale of inventories should yield $120,000, $20,000 of which must be assigned to a creditor (account payable) who is owed $24,000. The land and buildings can be sold for $222,000 with the buyer assuming the mortgage and its unpaid interest. The machinery will realize $50,000. All salaries qualify for priority.
Required:
Prepare a statement of affairs including the calculation of the dividend to Class 7 unsecured claims.

Question

As of June 30, 20X4, the Lillie Corporation has the following assets, liabilities, and owners' equity:
  The following is provided:
Marketable securities have a market value of $24,000. Accounts receivable are estimated to produce $30,000. The sale of inventories should yield $120,000, $20,000 of which must be assigned to a creditor (account payable) who is owed $24,000. The land and buildings can be sold for $222,000 with the buyer assuming the mortgage and its unpaid interest. The machinery will realize $50,000. All salaries qualify for priority.
Required:
Prepare a statement of affairs including the calculation of the dividend to Class 7 unsecured claims.

Quizplus · Accepted Answer

The Answer of As of June 30, 20X4, the Lillie Corporation has the following assets, liabilities, and owners' equity:
  The following is provided:
Marketable securities have a market value of $24,000. Accounts receivable are estimated to produce $30,000. The sale of inventories should yield $120,000, $20,000 of which must be assigned to a creditor (account payable) who is owed $24,000. The land and buildings can be sold for $222,000 with the buyer assuming the mortgage and its unpaid interest. The machinery will realize $50,000. All salaries qualify for priority.
Required:
Prepare a statement of affairs including the calculation of the dividend to Class 7 unsecured claims.

As of June 30, 20X4, the Lillie Corporation Has the Following