REQUIRED a statement of affairs assuming that the note payable and interest are 1 the equipment and that wages are less than $4,000 per employee. are secured by a mortgage on imate the amount that will be paid to each class of clai ee fees, are $4,000 and estimated net realizable values are trustec ms if priority liquidation expenses, including actually reali zed P 18-5 Financial reporting during bankruptcy The unsecured creditors of Dawn Corporation filed a petition under Chapter 7 of the act on July 1, 2011, to force Dawn into bankruptcy. The court order for relief was bankruptcy which time an interim trustee was appointed to supervise liquidation o f the estate. A listing of assets and liabilities of Dawn Corporation as of July 10, 2011, along with estimated realizable values, is as follows: Estimated Realizable Values Values Assets Cash Accounts receivable-net Inventories Equipment-net Land and buildings-net Intangible assets $80,000 210,000 200,000 150,000 250,000 10,000 $900,000 $80,000 160,000 210,000 60,000 140,000 $650,000 Accounts payable Note payable Wages payable (from June and July) Taxes payable Mortgage payable $200,000, plus $5.000 $400,000 100,000 24.000 76,000 unpaid interest to July 10 Capital stock Retained earnings deficit 205,000 300,000 205.000) $900,000 ADDITIONAL INFORMATION 1. Accounts receivable are pledged as security for the note payable. 2 No more than $1.000 is owed to any employee