The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy:

Additional Information

• If the company is liquidated, administrative expenses are estimated at $18,000.
• The accounts payable figure includes $10,000 in wages earned by the company’s 12 employees during May. No one earned more than $2,200.
• Liabilities do not include taxes of $14,000 owed to the U.S. government.
• Company officials estimate that 40 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $80,000. The land and buildings will be sold together for approximately $310,000; the equipment should bring $130,000 at auction.

Prepare a statement of financial affairs for Limestone Company as of June 3, 2020.

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LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets $ 3,000 65,000 Cash Accounts receivable (net) Inventory.. 88,000 Land. 100,000 Buildings (net) Equipment (net) 300,000 180,000 Total assets. $736,000 Llabilitles and Equitles $ 98,000 Accounts payable.. Notes payable-current (secured by equipment). Notes payable-long term (secured by land and buildings). Common stock Retained earnings.. 250,000 190,000 120,000 78,000 Total liabilities and equities $736,000