Question
2. LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets Cash $ 6,000 Accounts receivable (net) 68,000 Inventory 94,000 Land 103,000 Buildings (net) 303,000 Equipment (net)
2.
LIMESTONE COMPANY Balance Sheet June 3, 2017 | ||
Assets | ||
Cash | $ | 6,000 |
Accounts receivable (net) | 68,000 | |
Inventory | 94,000 | |
Land | 103,000 | |
Buildings (net) | 303,000 | |
Equipment (net) | 186,000 | |
Total assets | $ | 760,000 |
Liabilities and Equities | ||
Accounts payable | $ | 104,000 |
Notes payablecurrent (secured by equipment) | 256,000 | |
Notes payablelong term (secured by land and buildings) | 193,000 | |
Common stock | 123,000 | |
Retained earnings | 84,000 | |
Total liabilities and equities | $ | 760,000 |
Additional Information
If the company is liquidated, administrative expenses are estimated at $21,000.
The accounts payable figure includes $13,000 in wages earned by the company's 12 employees during May. No one earned more than $2,500.
Liabilities do not include taxes of $17,000 owed to the U.S. government.
Company officials estimate that 40 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $83,000. The land and buildings will be sold together for approximately $316,000; the equipment should bring $133,000 at auction.
Prepare a statement of financial affairs for Limestone Company as of June 3, 2017.
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