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. The entire inventory can be sold for only $35,800. The following is a trial balance as of March 14, 2020, the day the company files for a Chapter 7 liquidation:

Debit Credit Accounts payable $ 35,800 Accounts receivable $ 27,500 Accumulated depreciation, building 50,000 Accumulated depreciation, equipment 18,900 Additional paid-in capital 8,260 Advertising payable 4,020 Building 83,000 Cash 1,160 Common stock 50,600 Equipment 32,100 Inventory 123,000 Investments 15,700 Land 12,600 Note PayableColorado Savings and Loan (secured by lien on land and building) 72,600 Note PayableFirst National Bank (secured by equipment) 193,630 Payroll taxes payable 1,130 Retained earnings (deficit) 145,000 Salaries payable (owed equally to two employees) 5,120 Totals $ 440,060 $ 440,060

Company officials believe that 60 percent of the accounts receivable can be collected if the company is liquidated. The building and land have a fair value of $77,400, and the equipment is worth $20,500. The investments represent shares of a nationally traded company that can be sold at the current time for $21,200. Administrative expenses necessary to carry out a liquidation would approximate $17,400.

Prepare a statement of financial affairs for Lynch, Inc., as of March 14, 2020.

What did I do wrong? How to calculate the stockholder's equity?

Book Values Assets Available for Unsecured Creditors $ 77,400 72,600 $ 4,800 Pledged with Fully Secured Creditors: $ 45,600 Land and building Less: Notes payable Pledged with Partially secured Creditors: 13,200 Equipment Less: Notes payable Free Assets: 1,160 Cash 27,500 Accounts receivable 123,000 Inventory 15,700 Investments 20,500 193,630 1,160 16,500 35,800 21,200 Total available to pay liabilities with priority and unsecured creditors $ 79,460 23,650 55,810 $ Less: Liabilities with priority Available for unsecured creditors Estimated deficiency $ 226,160 $ 55,810 Unsecured Nonpriority Liabilities Book Values Liabilities and Stockholders' Equity $ Liabilities with Priority: 0 Administrative expenses 5,120 Salaries payable 1,130 Payroll taxes payable 17,400 5,120 $ 1,130 $ 23,650 Total Fully Secured Creditors: 72,600 Notes payable Less: Land and building Partially Secured Creditors: 193,630 Notes payable Less: Equipment 72,600 77,400 (4,800) 193,630 20,500 $ 173, 130 Unsecured Creditors: 35,800 Accounts payable 4,020 Advertising payable 35,800 4,020 Stockholders' equity $ 312,300 $ 208,150