7. Candice Company is currently going through bankruptcy reorganization. The accountant has determined the following balances of the accounts at December 31, 2011.

Prepare the balance sheet for Candice Company. Retained earnings will need to be calculated.

Assets Cash Invento Land Buildin Equipment Book Value 30,000 50,000 80,000 70,000 40,000 Fair Value $30,000 51,000 100,000 95,000 42,000 Liabilities as of the date of the order of relief Accounts Payable Accrued Expenses Income taxes pavable Note payable secured by land due 2013 Allowed claims Expected Settlement $70,000 15,000 19,000 75,000 $110,000 40,000 24,000 75,000 Liabilities since the date of the order of relief Accounts Payable Note Payable due 2012 $ 65,000 50,000 Common Stock $100,000