Question: A trustee has been appointed for Pace Inc which is

A trustee has been appointed for Pace Inc., which is being liquidated under Chapter 7 of the Bankruptcy Code. The following occurred after the assets were transferred to the trustee:
1. Sales on account by the trustee were $75,000. Cost of goods sold were $60,000, consisting of all inventory transferred from Pace.
2. The trustee sold all $12,000 worth of marketable securities for $10,500.
3. Receivables collected by the trustee:
Old: $21,000 of the $38,000 transferred
New: $47,000
4. Depreciation of $16,000 on the plant assets of $96,000 transferred from Pace recorded.
5. Disbursements by the trustee:
Old current payables: $22,000 of the $48,000 transferred
Trustee’s expenses: $4,300

Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.

View Solution:

Sale on SolutionInn
  • CreatedMay 23, 2014
  • Files Included
Post your question