The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2009, the date on which the company is to file a voluntary petition of bankruptcy:

LIMESTONE COMPANY Balance Sheet June 3, 2009 Assets Cash.S 3,000 Accounts receivable(net). 65,000 LO4 Inventory. 88,000 Land.100,000 Buildings (net).300,000 Equipment(net). 180,000 Totalassets. $736,000 Liabilities and Equities Accountspayable. $ 98,000 Notes payable—current

(secured by equipment). 250,000 Notes payable—long term

(secured by land and buildings). 190,000 Common stock.120,000 Retained earnings.78,000 Total liabilities andequities. $736,000 Additional Information

• If the company is liquidated, administrative expenses are estimated at $ 18,000.

• The Accounts Payable figure includes $10,000 in wages earned by the company’s 12 employees dur¬ ing May. No one earned more than $2,200.

• Liabilities do not include taxes of $14,000 owed to the U.S. government.

• Company officials estimate that 40 percent of the accounts receivable will be collected in a liquida¬ tion and that the inventory disposal will bring $80,000. The land and buildings will be sold together for approximately $310,000; the equipment should bring $130,000 at auction.

Prepare a statement of financial affairs for Limestone Company as of June 3, 2009.

40. Creditors of Jones Corporation are considering petitioning the courts to force the company into Chapter 7 bankruptcy. The following information has been determined. Administrative expenses in connection with the liquidation are estimated to be $22,000. Indicate the amount of money that each class of creditors can anticipate receiving.

Cash.

Accounts receivable.

Inventory.

Supplies.

Investments.

Land.

Buildings.

Equipment.

Notes payable (secured by land).

Notes payable (secured by buildings).

Bonds payable (secured by equipment)

Accountspayable.

Salaries payable (two weeks' salary for three employees).

Taxespayable.

Book Value Net Realizable Value

$ 6,000

$ 6,000 32,000 18,000 45,000 31,000 3,000

-0-

2,000 8,000 60,000 72,000 90,000 68,000 50,000 35,000 65,000 78,000 115,000 70,000 6,000 10,000