Problem 21-6 (LO 5) Preparation of a statement of realization and liquidation. Problem 21-5 presents the balance sheet of St. John Corporation as of the end of the prior year. Assume that the company is not able to service its debts and is unable to secure any significant restructuring arrangements from its primary lenders. As a result, St. John has decided to liquidate the corporation and has submitted a plan for liquidation. The plan has received all necessary approvals, and the liabilities affected by the plan are described as follows:

I need the complete: Statement of Realization and Liquidation

IMAGES ARE MORE THAN CLEAR, IF YOU CANT ANSWER DON'T RESPOND.

Problem 21-5 (LO I) Recording restructuring transactions. St. John Corporation is barely solvent and has been seeking an equity investor that would be interested in making a ital contribution so that the company would hopefully return to performance levels it had experienced in the past. At the end of the prior year, the company's balance sheet was as follows Assets Liabilities and Equity 380,000 Note payable-officer 400,000 240,000 Bank B note payable 820,000 Manufocturing plant Development land 220,000 200,000 100,000 Total $5,952,000 Total $5,952,000 Selected transactions occurring during the first six months of the current year were as I follows a. Patents with a fair value of $230,000 were transferred to the officer in partial satisfaction of their note. The remaining balance on the note would be paid over five quarters with the first payment of $35,026.77 due on June 30 of the current year. bThe mortgage payable was restructured with 40 quarterly payments of $51,178.05, begin. ning on June 30 of the current year, in addition to an immediate lump sum payment of $100,000 cThe bank A note payable was restructured as follows: the develo pment land with a net realiz- able value of $980,000 was conveyed along with marketable securities having a book value of $80,000 and a market value of $95,000. The balance of the note was to be over 10 quarters with payments of $111,145.03 beginning on June 30 of the current year. d. The bank B note payable was partially secured by equipment which had a book value of 240,000 and a net realizable value of $220,000. The equipment was seized by the bank and the company agreed to settle the balance of the note by making 10 quarterly payments of e. On June 30 of the current year all payments required by items (a) through (d) above f. Common shareholders approved a reduction in par value from $10 per share to $5 per share 55,000 beginning on June 30 of the current year. were pa and the deficit was eliminated. Problem 21-5 (LO I) Recording restructuring transactions. St. John Corporation is barely solvent and has been seeking an equity investor that would be interested in making a ital contribution so that the company would hopefully return to performance levels it had experienced in the past. At the end of the prior year, the company's balance sheet was as follows Assets Liabilities and Equity 380,000 Note payable-officer 400,000 240,000 Bank B note payable 820,000 Manufocturing plant Development land 220,000 200,000 100,000 Total $5,952,000 Total $5,952,000 Selected transactions occurring during the first six months of the current year were as I follows a. Patents with a fair value of $230,000 were transferred to the officer in partial satisfaction of their note. The remaining balance on the note would be paid over five quarters with the first payment of $35,026.77 due on June 30 of the current year. bThe mortgage payable was restructured with 40 quarterly payments of $51,178.05, begin. ning on June 30 of the current year, in addition to an immediate lump sum payment of $100,000 cThe bank A note payable was restructured as follows: the develo pment land with a net realiz- able value of $980,000 was conveyed along with marketable securities having a book value of $80,000 and a market value of $95,000. The balance of the note was to be over 10 quarters with payments of $111,145.03 beginning on June 30 of the current year. d. The bank B note payable was partially secured by equipment which had a book value of 240,000 and a net realizable value of $220,000. The equipment was seized by the bank and the company agreed to settle the balance of the note by making 10 quarterly payments of e. On June 30 of the current year all payments required by items (a) through (d) above f. Common shareholders approved a reduction in par value from $10 per share to $5 per share 55,000 beginning on June 30 of the current year. were pa and the deficit was eliminated