Bantan Inc. was a hardware store that operated in Camden, NJ. Management made some poor inventory acquisitions that loaded the store with unsalable merchandise. Due to the decline in revenues, the company became insolvent. Following is a trial balance as of March 15, 2021, the day the company filed for Chapter 7 liquidation. DR CR 42,900 32,500 65,000 20,800 10,400 5,200 104,000 1,300 65,000 AR Accum Depr - Building Accum Depr - Equipment APIC Advertising payable Building Cash Common Stock Equipment Inventory Investments Land NP - New Jersey Savings (secured by lien on land and building) NP - PNC Bank (secured by equipment) Payroll taxes yable RE (Deficit) Salaries payable (split equally between 2 employees) Totals 39,000 130,000 19,500 13,000 91,000 195,000 163,800 6,500 503,100 503,100 Assume that the company was being liquidated and that the following transactions occurred: Accounts receivable of $23,400 were collected, with the remaining balance deemed uncollectible. All of the company's inventory was sold for $52,000. Additional accounts payable of $13,000 incurred for various expenses such as utilities and maintenance were discovered. The land and building were sold for $92,300. The note payable due to the New Jersey Savings was paid. The equipment was sold at auction for only $14,300 with the proceeds applied to the note owed to the PNC Bank. Administrative expenses totaled $26,000, but no payment had yet been made. The investments were sold for $27,300. Paid all liabilities with priority Prepare a statement of realization and liquidation for the period from March 15 through July 26, 2021. And then below the statement of realization and liquidation, disclose what percentage the unsecured creditors will receive. (20 pts) Bantan Inc. was a hardware store that operated in Camden, NJ. Management made some poor inventory acquisitions that loaded the store with unsalable merchandise. Due to the decline in revenues, the company became insolvent. Following is a trial balance as of March 15, 2021, the day the company filed for Chapter 7 liquidation. DR CR 42,900 32,500 65,000 20,800 10,400 5,200 104,000 1,300 65,000 AR Accum Depr - Building Accum Depr - Equipment APIC Advertising payable Building Cash Common Stock Equipment Inventory Investments Land NP - New Jersey Savings (secured by lien on land and building) NP - PNC Bank (secured by equipment) Payroll taxes yable RE (Deficit) Salaries payable (split equally between 2 employees) Totals 39,000 130,000 19,500 13,000 91,000 195,000 163,800 6,500 503,100 503,100 Assume that the company was being liquidated and that the following transactions occurred: Accounts receivable of $23,400 were collected, with the remaining balance deemed uncollectible. All of the company's inventory was sold for $52,000. Additional accounts payable of $13,000 incurred for various expenses such as utilities and maintenance were discovered. The land and building were sold for $92,300. The note payable due to the New Jersey Savings was paid. The equipment was sold at auction for only $14,300 with the proceeds applied to the note owed to the PNC Bank. Administrative expenses totaled $26,000, but no payment had yet been made. The investments were sold for $27,300. Paid all liabilities with priority Prepare a statement of realization and liquidation for the period from March 15 through July 26, 2021. And then below the statement of realization and liquidation, disclose what percentage the unsecured creditors will receive. (20 pts)
