Statement of Realization and Liquidation
At January 1, 2020, the records of Sharon Thomson, trustee inbankruptcy for Davis Corporation, showed the following:
| Dr (Cr) |
| Cash | 20,000 |
| Assets not realized: | |
| Land | 60,000 |
| Building | 250,000 |
| Equipment | 75,000 |
| Patents | 15,000 |
| Liabilities not liquidated: | |
| Accounts payable | (279,000) |
| Loans payable | (341,000) |
| Estate deficit | 200,000 |
During January, Thomson sold equipment having a book value of35,000 for 10,000, and sold the patents for 30,000. Thomson waspaid 5,000 as a trustee's fee, and 50,000 was distributedproportionately to the creditors.
Required:
Prepare a statement of realization and liquidation for Januaryand a balance sheet and statement of estate deficit as of January30, 2020.
