Nicholas Miller
Date: 10/14/24
E 18-3
Note Receivable
Inventory Secured by Inventory Items - Recoverable Value
Unsecured portion of the note
Expected Recovery on Every Dollar of Unsecured Claims
Expected Recovery on Unsecured Portion of the Note
Add: Secured Portion
Ram's Expected Recovery on the Note
P18-1
1)
Journal
Date
Mar. 1
Mar. 1
Mar. 1
Mar. 1
Mar. 1
Mar. 1
2)
Sco in Trusteeship
Balance Sheet
For the Period Ended March 31, 2011
Assets:
Cash
Total Assets
Liabilities and Deficit
Accounts Payable
Note Payable - Unsecured
Revenue Received in Advance
Wages Payable
Mortgage Payable
Administrative Expense Payable
Total Liabilities
Less: Estate Deficit
Total Liabilities and Deficit
Sco in Trusteeship
Statement of Cash Receipt and Disbursements
From March 1 to March 31, 2011
Assets
Cash Balance, March 1, 2011
Add: Cash Receipts
Collections of Receivables
Sale of Inventories
Sale of Land and Buildings
Less: Cash Disbursement
Cash Balance, March 31, 2011
Sco in Trusteeship
Statement of Change in Estate Equity
From March 1 to March 31, 2011
Estate Equity March 1, 2011
Less:
Loss on Uncollectible Receivalbes
Loss on Sale of Inventories
Loss on Slae of Land and Buildings
Loss on Write-Off of Intangible Assets
Administrative Expense Payable
Estate Deficit, March 31, 2011
3)
Journal
Date
Apr. 1
Apr. 1
Apr. 1
Apr. 1
P18-5
1)
Dawn Corporation
Statement of Affairs
For July 10, 2011
Book Value
Assets
$ 210,000
250,000
80,000
200,000
150,000
10,000
$ 900,000
Liabilities and Stockholders' Equity
$ 50,000
24,000
76,000
100,000
205,000
350,000
300,000
(205,000)
$ 900,000
2)
Estimate amounts that would be paid to each class of claims
Priority Claims
Administrative Expenses
Accounts Payable
Wages Payable
Taxes Payable
Fully Secured Claims
Note Payable
Partially Secured Claims
Mortgages and Interest Payable
Unsecured
Accounts Payable
Calculated recovery for unsecured non-priority claims
Cash Available
Less: Paid to Priority Claims
Less: Paid to Fully Secured Claims
Less: Paid to Partially Secured Creditors
(A) Cash Available for Unsecured
Unsecured Claims
Partially Secured
Accounts Payable - Nonpriority
(B) Total Unsecured Claims
249,000 / 415,000 = .6
$0.60 per dollar
$ 200,000
ventory Items - Recoverable Value (50,000)
150,000
very Dollar of Unsecured Claims 0.35
nsecured Portion of the Note 52,500
50,000
ry on the Note 102,500
Journal
Account Debit
Cash 4,000
Accounts Receivable - Net 8,000
Inventories 36,000
Land 20,000
Buildings - Net 100,000
Intangible Assets 26,000
Accounts Payable
Note-Payable - Unsecured
Revenue Received in Advance
Wages Payable
Mortgage Payable
Estate Equity
(To record custody of Sco)
Cash 7,200
Estate Equity 800
Accounts Receivable - Net
(To record collection of receivables
and recognized loss)
Cash 19,400
Estate Equity 16,600
Inventories
(To record sale of inventories
and recognition of loss)
Cash 90,000
Estate Equity 30,000
Land
Buildings - Net
(To record the sale of land and buildings and
recognize loss)
Estate Equity 26,000
Intangible Assets
(To write off intangible assets for a loss)
Estate Equity 8,200
Administrative Expense Payable
Sco in Trusteeship
Balance Sheet
For the Period Ended March 31, 2011
$ 120,600
$ 50,000
40,000
1,000
3,000
80,000
8,200
Sco in Trusteeship
Statement of Cash Receipt and Disbursements
From March 1 to March 31, 2011
$ 7,200.00
19,400
90,000
Sco in Trusteeship
Statement of Change in Estate Equity
From March 1 to March 31, 2011
Receivalbes $ 800
16,600
nd Buildings 30,000
tangible Assets 26,000
e Payable 8,200
Journal
Account Debit
Mortgage Payable 80,000
Cash
(To record payment of secured creditors)
Administrative Expense Payable 8,200
Revenue Received in Advance 1,000
Wages Payable 3,000
Cash
(To record payment of priority liabilities)
Accounts Payable ((28,400 / 90,000) x 50,000) 15,778
Note Payable - Unsecured ((28,400/90,000) x 40,000) 12,622
Cash
(To record payment to unsecured creditors)
Accounts Payable (50,000 - 15,778) 34,222
Note Payable - Unsecured (40,000 - 12,622) 27,378
Estate Equity
(To write off remianing liabilities to close
trustees records)
Dawn Corporation
Statement of Affairs
For July 10, 2011
Realizable Value -
Liability Offsets
for Secured
Creditors
Assets
Fully Secured
Accounts Receivalbe - Net $ 160,000
Less: Notes Payable (100,000)
Partially Secured
Land and Buildings - Net 140,000
Less: Mortgage and Interest Payable 205,000
Usecured
Cash
Inventories
Equipment - Net
Intangible Assets
Total Available for Priority and Unsecured
Less: Priority Liabilities
Total Available for Unsecured Creditors
Estimated Deficiency
Liabilities and Stockholders' Equity
Priority Liabilities
Accounts Payable $ 50,000
Wages Payable 24,000
Taxes Payable 76,000
150,000
Fully Secured
Note Payable 100,000
Less: Accounts Receivable - Net (160,000)
(60,000)
Partially Secured
Mortgage and Interest Payable 205,000
Less: Land and Buildings - Net 140,000
65,000
Unsecured
Accounts Payable
Capital Stock
Retained Earnings (Deficit)
t would be paid to each class of claims
Claims by Priority Ranks Amounts to be Paid
$ 11,000 $ 11,000
50,000 50,000
24,000 24,000
76,000 76,000
100,000 100,000
205,000 140,000
39,000
350,000 210,000
$ 816,000 $ 650,000
or unsecured non-priority claims
$ 650,000
(161,000)
ed Claims (100,000)
cured Creditors (140,000)
Unsecured $ 249,000
$ 65,000
350,000
$ 415,000
(200,000 - 50,000)
(150,000 x 0.35)
(52,500 + 50,000
Credit
50,000
40,000
1,000
3,000
80,000
20,000
8,000
36,000
20,000
100,000
26,000
8,200
(4,000 + 7,200 + 19,400 + 90,000)
$ 120,600
$ 182,200 (50,000 + 40,000 + 1,000 + 3,000 + 80,000 + 8,200)
61,600 (800 + 16,600 + 30,000 + 26,000 + 8,200 + -20,000)
$ 120,600
$ 4,000.00
116,600 (7,200 + 19,400 + 90,000)
120,600
-
$ 120,600
$ 20,000
81,600 (800 + 16,600 + 30,000 + 26,000 + 8,200)
$ (61,600) (20,000 - 81,600)
Credit
80,000
12,200
28,400
61,600
Realizable Value
Available for Unsecured
Creditors
$ 60,000 All Calculations are Excel Formulas
80,000
210,000
60,000
-
410,000
150,000
260,000
155,000
$ 415,000
$ 65,000
350,000
$ 415,000
Amounts to be Written Off
All Calculations are Excel Formulas
$ 26,000
140,000
$ 166,000
