Mount Inc. was a hardware store that operated in Boise, Idaho. 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, 2011, the day the company filed for Chapter 7 liquidation. Company officials believed that sixty percent of the accounts receivable could be collected if the company was liquidated. The building and land had a fair value of $97,500, while the equipment was worth $24,700. The investments represented shares of a publicly traded company that could be sold at the time for $27,300. The entire inventory could be sold for only $42,900. Administrative expenses necessary to carry out a liquidation would have approximated $20,800. Required: Prepare a statement of financial affairs for Mount Inc. as of March 15, 2011. Assume that the company was being liquidated and that the following transactions occurred: Accounts receivable of $23,400 were collected. 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 Idaho Savings and Loan was paid. The equipment was sold at auction for only $14,300 with the proceeds applied to the note owed to the Second National Bank. The investments were sold for $27,300. Administrative expenses totaled $26,000 as of July 26, 2011, but no payment had yet been made.

Indicate how much money will be paid to the credit associated with each debt group.

Debit Question # 3: (30 Points) Mount Inc. was a hardware store that operated in Boise, Idaho. 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, 2013, the day the company filed for Chapter 7 liquidation. (SOS) : non Credit Accounts payable $ 42,900 Accounts receivable $ 32,500 Accumulated depreciation Building 65,000 Accumulated depreciation - Equipment 20,800 Additional paid -in capital 10,400 Advertising payable 5.200 Building 104,000 Cash 1,300 Common stock 65,000 bitars Equipment 39,000 Inventory 130,000 Investments 19.500 Land 13,000 Note payable - Idaho Suvings and Loan (secured by the bottom a lien on land and building) 91.000 Note payable - Second National Bank (secured by equipment) 195.000 Payroll taxes payable 1,300 Retained earnings (deficit) 163,800 Salaries payable (split equally between two employees) 6,500 Totals S 503,100 S 503,100 Company officials believed that sixty percent of the accounts receivable could be collected if the company was liquidated. The building and land had a fair value of $97,500, while the equipment was worth $24,700. The investments represented shares of a publicly traded company that could be sold at the time for $27,300. The entire inventory could be sold for only $42,900. Administrative expenses necessary to carry out a liquidation would have approximated $20,800. Assume that the company was being liquidated and that the following transactions occurred: Accounts receivable of $23,400 were collected. 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 Idaho Savings and Loan was paid. The equipment was sold at auction for only $14,300 with the proceeds applied to the note owed to the Second National Bank. The investments were sold for $27,300. Administrative expenses totaled $26,000 as of July 26, 2013, but no payment had yet been made. REQUIRED: Indicate how much money will be paid to the credit associated with each debt group. a) SECURED: $ b) UNSECURED PROPRITY: $ c) UNSECURED: $ d) UNSECURED (CENTS PER DOLLAR): Page 6 of 6