The balance sheet of Maple Leaf Company at February 1, 2023, is as follows: ...
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Accounting
The balance sheet of Maple Leaf Company at February 1, 2023, is as follows:
All liabilities are unsecured. On February 1, 2023, Maple Leaf Co. enters Chapter 7 bankruptcy proceedings. During the next two months, the following transactions were completed:
1. Received $125 from customers in payment of reported receivables. The rest of the receivables were determined to be uncollectible.
2. Sold all merchandise for $300 in cash.
3. Sold plant and equipment with a book value of $1,800 for $1,600.
4. Accrued trustee expenses of $10.
5. Paid $2,000 of loans.
Prepare a statement of realization and liquidation for the two-month period.
