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A trustee has been appointed for Pace Inc., which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets
A trustee has been appointed for Pace Inc., which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee: 1. Sales on account by the trustee were $76.800. Cost of goods sold were $60.800. consisting of all inventory transferred from Pace. 2. The trustee sold all $12.700 worth of marketable securities for $9.800. 3. Receivables collected by the trustee: old: New: $20,890 of the $38,100 transferred $46,609 4. Depreciation of $16,700 on the plant assets of $96,800 transferred from Pace recorded. 5. Disbursements by the trustee: Old current payables: Trustee's expenses: $22,300 of the $48,200 transferred $ 4,500 Required: Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter. PACE CORPORATION Statement of Realization and Liquidation Assets Assets Realized Assets to be Realized Assets Acquired Assets Not Realized Supplementary Items Supplementary Credits Supplementary Charges Liabilities Liabilities Liquidated Liabilities to be Liquidated Liabilities Not Liquidated Liabilities incurred
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