Prepare a statement of financial affairs for Mount Inc. as of March 15, 2011

Srudent 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 a Chapter 7 liquidation. eoit Credit S 32.500 Accounts payable S 42,900 Accounts receivable Accumulated depreciation building 65,000 20,800 10,400 5,200 Accumulated depreciationequipment Additional paid in capital Advertising payable Building 104,000 1,300 Cash Common stock 65,000 Equipment 39,000 130,000 19,500 13,000 Inventory Investments Land Note payableIdaho Savings and Loan (secured by lien on land and building) Note payable -Second National Bank (secured by 91,000 equipment) 195,000 1,300 Payroll taxes payable Retained earnings (deficit) 163,800 Salanies payable (split equally between two employees) 6,500 $ 503,100503,100 Totals 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