Problem 1; Answer questions related to a liquidation and realization statement with the following information of Johnson Inc.: Balance Sheet as on Dec 31, 2016: Assets Cash $ 9.000 Accounts receivable (30,000 - 7,500) 22,500 Inventory 285,300 Property & Equipment (181,200 - 73,650) 107,550

Owners' Equity. Capital Stock 270,000 Retained earnings (deficit) (132,000)

Note: Assume that there are no liabilities in this problem. The trustee who is appointed for liquidation, provided the following additional information:

1. The trustee sold all of Johnson's inventory for $306,000 of which $150,000 represented credit sales. 2. Cash collected on old receivables: $ 22,500, and on new receivables: $64,500. 3. Trustee expenses paid during liquidation: $ 29,700 4. The trustee recorded depreciation expense of $5,250. 5. Estimated uncollectibles on new receivables are $4,500, the trustee wrote off all the remaining accounts receivables. 6. The trustee sold off all the property and equipment for $87,000.

Required: 1. List all the assets to be reported under New Assets (along with their amounts). [2] 2. List all the assets to be reported under Assets Sold (along with their amounts). [9] 3. List all the assets to be reported under Assets Not Sold (along with their amounts). [3] 4. Calculate the "loss" to be reported under Supplementary credits. Give the list of all the gains and losses this amount is made up of