REFERENCE: Ref.13_07
Mount Inc.was a hardware store that operated in Boise,Idaho.Management made some poor inventory acquisitions that loaded the store with unsalable merchandise.Due to the decline in revenues,the company became insolvent.Following is a trial balance as of March 15,2009,the day the company filed for a Chapter 7 liquidation. Company officials believed that sixty percent of the accounts receivable could be collected if the company was liquidated.The building and land had a fair value of $97,500,while the equipment was worth $24,700.The investments represented shares of a nationally traded company that could be sold at the time for $27,300.The entire inventory could be sold for only $42,900.Administrative expenses necessary to carry out a liquidation would have approximated $20,800.
-Required:
Prepare a statement of financial affairs for Mount Inc.as of March 15,2009.

Question

REFERENCE: Ref.13_07
Mount Inc.was a hardware store that operated in Boise,Idaho.Management made some poor inventory acquisitions that loaded the store with unsalable merchandise.Due to the decline in revenues,the company became insolvent.Following is a trial balance as of March 15,2009,the day the company filed for a Chapter 7 liquidation.  Company officials believed that sixty percent of the accounts receivable could be collected if the company was liquidated.The building and land had a fair value of $97,500,while the equipment was worth $24,700.The investments represented shares of a nationally traded company that could be sold at the time for $27,300.The entire inventory could be sold for only $42,900.Administrative expenses necessary to carry out a liquidation would have approximated $20,800.
-Required:
Prepare a statement of financial affairs for Mount Inc.as of March 15,2009.

Quizplus · Accepted Answer

The Answer of REFERENCE: Ref.13_07
Mount Inc.was a hardware store that operated in Boise,Idaho.Management made some poor inventory acquisitions that loaded the store with unsalable merchandise.Due to the decline in revenues,the company became insolvent.Following is a trial balance as of March 15,2009,the day the company filed for a Chapter 7 liquidation.  Company officials believed that sixty percent of the accounts receivable could be collected if the company was liquidated.The building and land had a fair value of $97,500,while the equipment was worth $24,700.The investments represented shares of a nationally traded company that could be sold at the time for $27,300.The entire inventory could be sold for only $42,900.Administrative expenses necessary to carry out a liquidation would have approximated $20,800.
-Required:
Prepare a statement of financial affairs for Mount Inc.as of March 15,2009.

REFERENCE: Ref.13_07 Mount Inc.was a Hardware Store That Operated in Boise,Idaho.Management Made