Statement of Realization and Liquidation Comfort Mattress Corporation, a retaller, decided to liquidate in the face of an extreme cash shortage. By agreement with creditors, a recelver was appointed to manage the liquidation. Upon appointment, the receiver found the company's financial condition to be as follows: COMFORT MATTRESS CORPORATION Balance Sheet March 17, 2016 15.000 Accounts Payable Cash Accounts receivable Inventory of merchandise Store fxtures, net Total assets 120,000 Loan payable (secured by inventory) 225,000 500.000 Notes payable (secured by fixtures) 60.000 50,000 Stockholders' equity $785,000 Total liabilities and equity 15,000 $785,000 From March 17 through June 30, the following occurred: 1.Collected accounts receivable of $80,000; the remaining accounts are deemed to be uncollectible. 2. Held a "going out of business sale." Sold inventory costing $310,000 for $298,000. Paid expenses of conducting the sale, amounting to $75,000. 3. Sold the remaining inventory to a liquidator for $60,000 4. The receiver terminated the store's lease; the lease provides for a termination penalty of $25,000, which was accrued. 5. Sold the store fixtures at auction for a net of $40,000. 6. Accrued the recelver's fee of $50,000. 7. Paid the secured creditors to the extent of the realized value of their security. Required a. Prepare a statement of realization and liquidation as of June 30, 2016 Statement of Realization and Liquidation Comfort Mattress Corporation, a retaller, decided to liquidate in the face of an extreme cash shortage. By agreement with creditors, a recelver was appointed to manage the liquidation. Upon appointment, the receiver found the company's financial condition to be as follows: COMFORT MATTRESS CORPORATION Balance Sheet March 17, 2016 15.000 Accounts Payable Cash Accounts receivable Inventory of merchandise Store fxtures, net Total assets 120,000 Loan payable (secured by inventory) 225,000 500.000 Notes payable (secured by fixtures) 60.000 50,000 Stockholders' equity $785,000 Total liabilities and equity 15,000 $785,000 From March 17 through June 30, the following occurred: 1.Collected accounts receivable of $80,000; the remaining accounts are deemed to be uncollectible. 2. Held a "going out of business sale." Sold inventory costing $310,000 for $298,000. Paid expenses of conducting the sale, amounting to $75,000. 3. Sold the remaining inventory to a liquidator for $60,000 4. The receiver terminated the store's lease; the lease provides for a termination penalty of $25,000, which was accrued. 5. Sold the store fixtures at auction for a net of $40,000. 6. Accrued the recelver's fee of $50,000. 7. Paid the secured creditors to the extent of the realized value of their security. Required a. Prepare a statement of realization and liquidation as of June 30, 2016