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Please fill out blue boxes. Thank you. The following balance sheet has been prepared by the accountant for Limestone Company as of June 3,2020 ,
Please fill out blue boxes. Thank you.
The following balance sheet has been prepared by the accountant for Limestone Company as of June 3,2020 , the date on which the company is to file a voluntary petition of bankruptcy: Additional Information - If the company is liquidated, administrative expenses are estimated at $39,000. - The accounts payable figure includes $31,000 in wages earned by the company's 12 employees during May. No one earned more than $4,300. - Liabilities do not include taxes of $35,000 owed to the U.S. government. - Company officials estimate that 30 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $101,000. The land and buildings will be sold together for approximately $352,000; the equipment should bring $151,000 at auction. Prepare a statement of financial affairs for Limestone Company as of June 3, 2020. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ LIMESTONE COMPANY } \\ \hline \multicolumn{3}{|c|}{ Statement of Financial Affairs } \\ \hline \multicolumn{3}{|c|}{ June 3,2020} \\ \hline \multirow[t]{2}{*}{ Book Values } & Assets & \begin{tabular}{c} Available for \\ Unsecured \\ Creditors \end{tabular} \\ \hline & Pledged with Fully Secured Creditors: & \\ \hline \\ \hline & P & \\ \hline & Pledged with Partially Secured Creditors: & \\ \hline \multicolumn{3}{|l|}{ r } \\ \hline & & \\ \hline & Free Assets: & \\ \hline \multicolumn{3}{|l|}{ C } \\ \hline \multicolumn{3}{|c|}{1} \\ \hline \multicolumn{3}{|l|}{5} \\ \hline \\ \hline & \begin{tabular}{l} Total amount available to pay liabilities with \\ priority and unsecured creditors \end{tabular} & \\ \hline & 1 & r \\ \hline & Available for unsecured creditors & \\ \hline & Estimated deficiency & r \\ \hline \multirow[t]{2}{*}{ Book Values } & Liabilities and Stockholders' Equity & \begin{tabular}{c} Unsecured \\ Nonpriority \\ Liabilities \end{tabular} \\ \hline & Liabilities with Priority: & \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \multicolumn{3}{|c|}{\begin{tabular}{l|l} & Total \\ \end{tabular}} \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{\begin{tabular}{|l|l|} & Fully Secured Creditors: \\ \end{tabular}}} \\ \hline & \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{\begin{tabular}{|l|l|} & \\ & Partially Secured Creditors: \end{tabular}}} \\ \hline & Partially Secured Creditors: & \\ \hline \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{ll} \\ \end{tabular}} \\ \hline \multicolumn{3}{|c|}{\begin{tabular}{l|l|} & Unsecured Creditors: \end{tabular}} \\ \hline \\ \hline \\ \hline & Stockholders' equity & \\ \hline & & \\ \hline \end{tabular}Step by Step Solution
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