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 the unsecured claims without priority.

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 the unsecured claims without priority.

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 the unsecured claims without priority.

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