A trustee, R. Smith, has been appointed for Nelson Company, which is being liquidated under Chapter 7 of the Bankruptcy Reform Act. The trial balance at the beginning of the liquidation on May 1, 20X1, was as follows:

The following transactions occurred:
1. The goodwill was written off.
2. The assets were transferred to the trustee.
3. The trustee purchased inventory of \(\$ 24.000\) on account.
4. Sales on account by the trustee were \(\$ 90.000\). Cost of goods sold was \(\$ 60,000\), including all the inventory transferred from Nelson.
5. Disbursements by trustee:

6. Receivables collected by trustee:

7. Marketable securities were sold for \(\$ 16,000\).
8. Adjusting entries on June 30, 20X1:

\section*{Required}
Prepare a statement of realization and liquidation reflecting these transactions according to the traditional approach illustrated in the chapter.

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Debit Credit Cash $ 30.000 Marketable Securities 12.000 Accounts Receivable 36.000 Allowance for Uncollectibles $ 3.000 Inventory 50,000 Land 40,000 Plant and Equipment (net) 110,000 Goodwill 16,000 Accounts Payable 95.000 Notes Payable 35,000 Interest Payable 8,000 Mortgages Payable 80,000 Common Stock ($10 par) 150,000 Retained Earnings (deficit) 77,000 Total $371.000 $371,000