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. Following is a trial balance as of March 14, 2017.

		Debit		Credit
Accounts payable			$	35,000
Accounts receivable	$	29,000
Accumulated depreciation, building				52,000
Accumulated depreciation, equipment				18,000
Additional paid-in capital				10,000
Advertising payable				6,000
Building		82,000
Cash		3,000
Common stock				56,000
Equipment		36,000
Inventory		104,000
Investments		17,000
Land		12,000
Note PayableColorado Savings and Loan (secured by lien on land and building)				72,000
Note PayableFirst National Bank (secured by equipment)				154,000
Payroll taxes payable				3,000
Retained earnings (deficit)		130,000
Salaries payable (owed equally to two employees)				7,000
Totals	$	413,000	$	413,000

Assume that the company will be liquidated and the following transactions will occur:

• Accounts receivable of $20,000 are collected with remainder written off.
• All of the company's inventory is sold for $42,000.
• Additional accounts payable of $12,000 incurred for various expenses such as utilities and maintenance are discovered.
• The land and building are sold for $75,000.
• The note payable due to the Colorado Savings and Loan is paid.
• The equipment is sold at auction for only $13,000 with the proceeds applied to the note owed to the First National Bank.
• The investments are sold for $25,000.
• Administrative expenses total $22,000 as of July 23, 2017, but no payment has yet been made.

1. Prepare a statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017.

2. How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $3,000?

Cash and receivables 227,880 490,000 76,500 121,400 11.814 405,950 956, 116 141, 120 469,000 431,000 274,000 21,150 653,100 X 146,216 X 141,120 356,000 147,000 321,000 67,200 40.000 (6,550) X 8,400 203,000 94,600 20,300 6,550 16.800 171,100 33,200 41,150 X Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Goodwill Franchise contracts Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling interest in Wilson Noncontrolling interest in subsidiary companies Common stock Retained earnings (above) Total liabilities and equities 316,194 996, 200 0 0 1,139,350 664,200 615,300 171,100 29,050 3.931,394 (1,489,000) 0 0 (480,645) (820,000) (1,141,749) (3,931,394) 2,689,000 1,683,000 515,800 (728,000) (598,000) (163,000) 66,000 0 (66,000) (371,520) (480,645) (820,000) (1,141,000) (2,689,000) (310,000) (775,000) (1,683,000) (150,000) (202,800) (515,800) 0 X 0 X 1,157,720 1,303,166 Required A Required B Prepare statement of realization and liquidation for the period from March 14, 2017, through July 23, 2017. (Negative amounts should be indicated by a minu Fully Cash LYNCH, INC. Statement of Realization and Liquidation March 14, 2017 to July 23, 2017 Noncash Liabilities Partially Unsecured Stockholders with Secured Secured Nonpriority Equity Assets Priority Creditors Creditors Liabilities (Deficits) Book balances, 3/14/17 $ 0 $ 0 Accounts receivable collected remaining balance assumed to be uncollectible Inventory sold Accounts payable discovered Land and buildings all sold Fully secured note paid Equipment sold Payment made on partially secured debt Investments sold Administrative expenses accrued Remaining partially secured claims reclassified as unsecured liabilities Final balances remaining for unsecured creditors $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Complete this question by entering your answers in the tabs below. Required A Required B How much cash would be paid to an unsecured, nonpriority creditor that Lynch, Inc., owes a total of $3,000? (Round your percentage claim for unsecured liabilities to the nearest whole percent.) Cash paid