Académique Documents
Professionnel Documents
Culture Documents
1.
2.
Accounts Payable
Cash ($71,600 .42)
Gain on Restructuring of Debt
71,600
19,450
3,550
Accounts Payable
Accounts Receivable
Gain on Restructuring of Debt ($132,400 - $69,000)
3.
4.
Accrued Expenses
Cash
30,072
41,528
23,000
132,400
69,000
63,400
14,620
14,620
Notes Payable
Accrued Interest Payable
Cash
Restructured Debt
Gain on Restructuring of Debt ($327,000 - $309,000)
300,000
27,000
9,000
300,000
18,000
Problem 10-2
Part A
1.
Allowance for Uncollectibles
Loss on Transfer of Assets
Accounts Receivable ($71,450 - $51,000)
Accounts Payable
Accounts Receivable
Gain on Restructuring of Debt
2.
3.
16,750
3,700
20,450
69,000
51,000
18,000
Patents
Gain on Transfer of Asset ($50,000 - $42,000)
8,000
Accounts Payable
Patents
Gain on Restructuring of Debt
54,000
Accrued Wages
Cash
11,900
19,700
10 - 1
8,000
50,000
4,000
11,900
11,820
7,880
4.
Notes Payable
Accrued Interest Payable
Restructured Debt due 1/3/14
57,000
6,000
$63,000
7,560
70,560
$63,000
Notes Payable
Accrued Interest Payable
Restructured Debt due 1/3/15
Gain on Restructuring of Debt
54,400
11,900
7,
Balance 1/2/12
Loss on transfer (1)
Balance
63,000
Retained Earnings
156,800Gain on restructuring (1)
3,700Gain on transfer (2)
Gain on restructuring (2)
Gain on restructuring (3)
Gain on restructuring (5)
Gain on restructuring (6)
66,820
10 - 2
52,000
14,300
$40,000
12,000
52,000
66,300
$14,300
80,000
20,500
50,000
9,000
41,500
232,000
66,820
165,180
18,000
8,000
4,000
7,880
14,300
41,500
Part B
SRP COMPANY
Balance Sheet
January 2, 2012
Cash ($32,200 - $11,900 - $11,820)
Inventories
Plant and Equipment
Less Accumulated Depreciation
Land
Patents ($92,000 + $8,000 - $50,000)
Total
8,480
126,600
$322,000
180,700
141,300
20,800
50,000
$347,180
$ 63,000
52,000
58,000
174,180
- 0 $347,180
3,780
3,780
No interest is accrued on the debt due in 2015 because all cash payments are reductions of the
carrying value of the debt.
1/2/13
Interest Payable
Cash
3,780
3,780
Restructured Debt
Cash ($52,000 .10)
5,200
5,200
10 - 3
Problem 10-4
BRAN COMPANY
Jim Brown, Trustee
Reconciliation and Liquidation Account
June 30, 2012 to December 31, 2012
Assets to be Realized
Receivables (old)
Less: Allowance for
Uncollectibles
Inventory
Plant and Equipment
Less: Accumulated
Depreciation
$
45,000
6,000 $ 39,000
Assets Realized
Receivables (old)
104,000
215,000
70,000
Receivables (new)
85,000
39,000
Assets Acquired
Receivables (new)
Supplementary Charges
Purchases
Operating Expenses
Trustee Expenses
Loss on Sale of
Equipment
Liabilities Liquidated
Accounts Payable (old)
Accounts Payable (new)
Liabilities Not Liquidated
Accounts Payable (old)
Accounts Payable (new)
Net Gain (1)
$ 38,000
$
15,000
2,000
75,000
151,000
55,000
145,000
110,000
30,000 Liabilities Incurred
Accounts Payable (new)
35,000
35,000
5,000
3,000
$667,000
$667,000
Balance June 30
Sales
Accounts Receivable (old)
10 - 4
96,000
130,000
11,000
Liabilities to be Liquidated
Accounts Payable (old)
Cash
15,000 Accounts Payable (old)
30,000 Accounts Payable (new)
38,000 Operating Expenses
13,000
110,000
30,000
47,000
Proof of Gain:
Sales
Cost of Sales ($104,000 + $35,000 - $75,000)
Operating Expenses
Trustee Expenses
Bad Debts Expense
Depreciation Expense
Gain on Sale of Land
Loss on Sale of Equipment
Net Gain
10 - 5
$ 130,000
(64,000)
(47,000)
(2,000)
(3,000)
(10,000)
11,000
(12,000)
$ 3,000
2,000
Problem 10-5
Part A
Trustees Books
Cash
Accounts Receivable (old)
Inventory
Property and Equipment
Allowance for Uncollectibles (old)
Accumulated Depreciation
Plum Company in Receivership ($252,750 - $3,750 - $36,825)
To record the receipt of Plum Companys assets.
4,500
15,000
142,650
90,600
3,750
36,825
212,175
Cash
Accounts Receivable (new)
Sales
To record merchandise sales.
78,000
75,000
Cash
75,750
153,000
11,250
64,500
11,850
3,000
14,850
2,250
5,250
3,750
10 - 6
2,250
5,250
3,750
143,175
143,175
43,500
42,075
5,025
90,600
Sales
Plum Company in Receivership
Inventory
Operating Expenses
Trustee Expenses
Bad Debt Expense
Depreciation Expense
Loss on Sale of Equipment
To close income statement accounts.
153,000
17,025
142,650
11,850
3,000
2,250
5,250
5,025
10 - 7
3,750
36,825
212,175
4,500
15,000
142,650
90,600
143,175
143,175
17,025
17,025
Part B
Adjustments and
Eliminations
Dr.
Cr.
Combined
Income
Balance
Statement
Sheet
Debits
Cash *
Accounts Receivable (new)
Inventory
Operating Expenses
Trustee Expense
Bad Debt Expense
Depreciation Expense
Cost of Goods Sold
Loss on Sale of Equipment
P Smith, Trustee
Total Debits
43,725
10,500
142,650
11,850
3,000
2,250
5,250
43,725
10,500
(1)
(1)
142,650
11,850
3,000
2,250
5,250
142,650
5,025
142,650
5,025
69,000
$ 224,250 $ 69,000
(2)
69,000
$ 170,025
$ 54,225
Credits
Allowance for Uncollectibles: (New)
Capital Stock
Retained Earnings (Deficit)
Sales
Plum Company-in Receivership
Total Credits
Net Loss
2,250
2,250
135,000
(66,000)
135,000
(66,000)
153,000
69,000
(2)
69,000
$ 224,250 $ 69,000
$211,650
10 - 8
153,000
$211,650
153,000
17,025
$ 170,025
(17,025)
$ 54,225
Problem 10-6
Assets to be Realized
Accounts Receivable (old)
Less: Allowance for Uncollectibles
Inventory
Plant and Equipment
Less: Accumulated Depreciation
PLUM COMPANY
P. Smith, Trustee
Realization and Liquidation Account
June 1, 2012 to October 31, 2012
$15,000
3,750
90,600
36,825
Assets Acquired
Accounts Receivable (new)
Supplementary Charges
Operating Expenses
Trustee Expense
Loss on Sale of Equipment *
Assets Realized
Accounts Receivable (old)
$ 11,250 Accounts Receivable (new)
142,650 Property and Equipment
Less: Accumulated Depreciation
53,775
Assets Not Realized
Accounts Receivable (new)
Less: Allowance for Uncollectibles
75,000
Supplementary Credits
11,850 Sales
3,000
5,025 Liabilities to be Liquidated
Accounts Payable
Liabilities Liquidated
Accounts Payable
Opening Amount
Sales
Accounts Receivable
Sale of Land and Equipment
Balance 10/31
10 - 9
$90,600
42,075
48,525
10,500
2,250
8,250
153,000
143,175
17,025
$ 445,725
$ 11,250
64,500
11,850
3,000
143,175
10 - 10