Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / A trustee has been appointed for Pace Inc which is being liquidated under Chapter

A trustee has been appointed for Pace Inc which is being liquidated under Chapter

A trustee has been appointed for Pace Inc., which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee:

1.

Sales on account by the trustee were $75,500. Cost of goods sold were $60,800, consisting of all inventory transferred from Pace.

2. The trustee sold all $12,800 worth of marketable securities for $9,300.
3. Receivables collected by the trustee:
          
  Old: $ 20,700   of the $39,400 transferred
  New: $ 46,300    
 
4. Depreciation of $15,100 on the plant assets of $97,500 transferred from Pace recorded.
5. Disbursements by the trustee:
          
  Old current payables: $ 22,600   of the $48,500 transferred
  Trustee’s expenses: $ 6,300    
 
Required:

Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.

Feb 06 2020 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions