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Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor inventory acquisitions that have loaded the store with unsalable merchandise. Because of the drop in revenues, the company is now insolvent. Following is a trial balance as of March 14, 2017 Accounts payable Accounts receivable Accumulated depreciation, building Accumulated depreciation, equipment Additional paid-in capital Advertising payable Building Cash Common stock Equipment Inventory Investments Land Note Payable-Colorado Savings and Loan (secured by tien on land and building) Note Payable-First National Bank (secured by equipment) Payroll taxes payable Retained earnings (deficit) Salaries payable (owed equally to two employees) Totals Debit Credit $ 37,000 $ 33,000 54,00 20,eee 12,000 8,000 84,000 5,000 62,800 42,000 108,000 19,000 14,000 74,000 158,800 5, eee 134,000 9,000 $439,000 $439,000 Assume that the company will be liquidated and the following transactions will occur Accounts receivable of $22.000 are collected with remainder written oft. All of the company's inventory is sold for $44,000 Additional accounts payable of $14,000 incurred for various expenses such as utilities and maintenance are discovered. The land and building are sold for $79,000. The note payable due to the Colorado Savings and Loan is paid, The equipment is sold at auction for only $15,000 with the proceeds applied to the note owed to the First National Bank. The investments are sold for $29,000 Administrative expenses total $24,000 as of July 23, 2017, but no payment has yet been made. a. Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017 b. How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $5,000? Answer is not complete Complete this question by entering your answers in the tabs below. Required Required Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017. (Negative amounts should be indicated by a minus sign.) LYNCH, INC Statement of Realization and Liquidation March 14, 2017 to July 23, 2017 Noncash Liabilities Cash Assets with Priority $ 5.000226,000$ (14,000) 22.000 (33.000) 44,000 (108.000) Fully Partially Unsecured Secured Secured Nonpriority Creditors Creditors Liabilities (232.000) * $ (37,000) $ (8,000) Stockholders Equity (Deficits) 60,000 $ O Book balances, 3/14/7 Accounts receivable collected remaining balance assumed to be uncollectible brevertory sold Acours payable discovered Land and buildings sold Fully securedno pad Equipment sold Payment made on para secured bt Investments Administrative expenses acord (14,000) 11,000 64,000 14.000 (35.000) 74.000 79.000 (44,000) (74,000) 15.000 22.000) (15,0001 29.000 (19,000) 7.000 15.000 (24,000) 75.000 3 175.0001 (10,000) 24.000 Return to question Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017. (Negative amounts should be indicated by a minus sign.) Fully Secured Creditors Partially Secured Cred tons * $ (37.000) Unsecured Stockholders Nonpriority Equity Llabilities (Deficits) (8,000) $ 60.000 (232,000 LYNCH, INC. Statement of Realization and Liquidation March 14, 2017 to July 23, 2017 Noncash Liabilities Cash Assets Priority Book balances, 2/14/17 $ 5.000$ 226,000$ (14,000) Accounts receivable collected remaining balance assumed to be uncollectible 22,000 (33,000) Inventory sold 44,000 (108,000) Accounts payable discovered Land and buildings al sold 79,000 (44,000) Fully securednote po (74,000) Equipment sold 15.000 (22,000) Payment made on partially secured debt (15,000) Investments sold 29,000 (19,000) Administrative expenses accrued Remaining partially secured claims reclassified as unsecured liabilities Final balances remaining for unsecured creditors 105,000 0 $ (14,000) 11,000 64,000 14,000 (35,000) (14,000) Bolo 74,000 7,000 15.000 (24,000) 75.000 (10,000) 24,000 (75,000) $ (143 000) 0 (83,000) 135.000 . All of the company's inventory is sold for $44,000. Additional accounts payable of $14,000 incurred for various expenses such as utilities and maintenance are discovered. The land and building are sold for $79,000. The note payable due to the Colorado Savings and Loan is paid. The equipment is sold at auction for only $15,000 with the proceeds applied to the note owed to the First National Bank. The investments are sold for $29,000. Administrative expenses total $24,000 as of July 23, 2017, but no payment has yet been made. a. Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017 b. How much cash would be paid to an unsecured, nonpriority.creditor that Lynch, Inc., owes a total of $5,000? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $5,000? (Round your percentage claim for unsecured liabilities to the nearest whole percent.) Cash paid $ 0 a. Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017 b. How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $5,000? Answer is not complete Complete this question by entering your answers in the tabs below. Required Required Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017. (Negative amounts should be indicated by a minus sign.) LYNCH, INC Statement of Realization and Liquidation March 14, 2017 to July 23, 2017 Noncash Liabilities Cash Assets with Priority $ 5.000226,000$ (14,000) 22.000 (33.000) 44,000 (108.000) Fully Partially Unsecured Secured Secured Nonpriority Creditors Creditors Liabilities (232.000) * $ (37,000) $ (8,000) Stockholders Equity (Deficits) 60,000 $ O Book balances, 3/14/7 Accounts receivable collected remaining balance assumed to be uncollectible brevertory sold Acours payable discovered Land and buildings sold Fully securedno pad Equipment sold Payment made on para secured bt Investments Administrative expenses acord (14,000) 11,000 64,000 14.000 (35.000) 74.000 79.000 (44,000) (74,000) 15.000 22.000) (15,0001 29.000 (19,000) 7.000 15.000 (24,000) 75.000 3 175.0001 (10,000) 24.000 Return to question Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017. (Negative amounts should be indicated by a minus sign.) Fully Secured Creditors Partially Secured Cred tons * $ (37.000) Unsecured Stockholders Nonpriority Equity Llabilities (Deficits) (8,000) $ 60.000 (232,000 LYNCH, INC. Statement of Realization and Liquidation March 14, 2017 to July 23, 2017 Noncash Liabilities Cash Assets Priority Book balances, 2/14/17 $ 5.000$ 226,000$ (14,000) Accounts receivable collected remaining balance assumed to be uncollectible 22,000 (33,000) Inventory sold 44,000 (108,000) Accounts payable discovered Land and buildings al sold 79,000 (44,000) Fully securednote po (74,000) Equipment sold 15.000 (22,000) Payment made on partially secured debt (15,000) Investments sold 29,000 (19,000) Administrative expenses accrued Remaining partially secured claims reclassified as unsecured liabilities Final balances remaining for unsecured creditors 105,000 0 $ (14,000) 11,000 64,000 14,000 (35,000) (14,000) Bolo 74,000 7,000 15.000 (24,000) 75.000 (10,000) 24,000 (75,000) $ (143 000) 0 (83,000) 135.000 . All of the company's inventory is sold for $44,000. Additional accounts payable of $14,000 incurred for various expenses such as utilities and maintenance are discovered. The land and building are sold for $79,000. The note payable due to the Colorado Savings and Loan is paid. The equipment is sold at auction for only $15,000 with the proceeds applied to the note owed to the First National Bank. The investments are sold for $29,000. Administrative expenses total $24,000 as of July 23, 2017, but no payment has yet been made. a. Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017 b. How much cash would be paid to an unsecured, nonpriority.creditor that Lynch, Inc., owes a total of $5,000? Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $5,000? (Round your percentage claim for unsecured liabilities to the nearest whole percent.) Cash paid $ 0