E18-5 Financial reporting during bankruptcy – Distributions to creditors PT Keraton filed for Chapter 7 bankruptcy and was liquidated by a court-appointed trustee. The following financial report was prepared by the trustee:

Assets Cash $220,000 Approved claims $90,000 Note payable (secured by inventory that was sold for

$30,000)

Mortgage payable (secured by property that was sold for

$80,000)

120,000 Administrative expenses payable 15,000 Accounts payable, unsecured 20,000 Salaries payable, unsecured 10,000 Interest payable, unsecured 15,000

$270,000 REQuIRED: Show how the $220,000 cash will be distributed to holders of each of the claims.

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