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  • PR Advance 1 Exercise 10-7 Statement of Affairs

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    Reynaldi
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    Ball Company's statement of affairs from June 30, 2015 shows that the company has $800,400 in total book value assets but only $355,000 in total realizable value. Liabilities include $120,000 in accrued wages that have priority, $100,000 to a fully secured creditor, $100,000 to a partially secured creditor, and $350,000 to unsecured creditors. This results in an estimated $124,600 deficiency to unsecured creditors.

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    Ball Company's statement of affairs from June 30, 2015 shows that the company has $800,400 in total book value assets but only $355,000 in total realizable value. Liabilities include $120,000 in accrued wages that have priority, $100,000 to a fully secured creditor, $100,000 to a partially secured creditor, and $350,000 to unsecured creditors. This results in an estimated $124,600 deficiency to unsecured creditors.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    259 views2 pages

    PR Advance 1 Exercise 10-7 Statement of Affairs

    Uploaded by

    Reynaldi
    Ball Company's statement of affairs from June 30, 2015 shows that the company has $800,400 in total book value assets but only $355,000 in total realizable value. Liabilities include $120,000 in accrued wages that have priority, $100,000 to a fully secured creditor, $100,000 to a partially secured creditor, and $350,000 to unsecured creditors. This results in an estimated $124,600 deficiency to unsecured creditors.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Ball Company Statement of Affairs June 30, 2015

    Book Value Assets Reliazable Value


    Assets pledged with fully secured creditors
    $ 180,000.00 Inventory $ 110,000.00
    Notes Payable $ (100,000.00)
    $ 10,000.00
    Assets pledged with partially secured creditor
    $ 170,000.00 Accounts Receivable $ 95,000.00
    Notes Payable $ (100,000.00)
    $ (5,000.00)

    Free Assets
    $ 20,400.00 Cash $ 20,400.00
    $ 430,000.00 Property & Equipment $ 320,000.00
    Total Net Realizable Value $ 350,400.00
    Liabilities Having Priority
    Accrued Wages $ 120,000.00
    Net Free Assets $ 230,400.00
    Estimated Deficiency to Unsecured Creditors (balancing amount) $ 124,600.00
    $ 800,400.00 $ 355,000.00

    Book Value Equities Unsecured Liabilities


    Liabilities Having Priority
    $ 120,000.00 Accrued Wages $ 120,000.00

    Fully Secured Creditors


    Notes Payable $ 100,000.00
    Inventory $ 110,000.00
    $ (10,000.00)
    Partially Secured Creditors
    $ 200,000.00 Notes Payable $ 100,000.00
    Accounts Receivable $ (95,000.00)
    $ 5,000.00
    Unsecured Creditors
    $ 350,000.00 Accounts Payable $ 350,000.00

    Stockholder's Equity
    $ 400,000.00 Common Stock
    $ (269,600.00) Retained Earnings (deficit)
    $ 800,400.00 $ 355,000.00
    Estimated Deficiency
    Deficiency Account

    $ (70,000.00)

    $ (75,000.00)

    $ (110,000.00)

    $ (255,000.00)

    Deficiency Accounts

    $ 400,000.00
    $ (269,600.00)
    $ 130,400.00
    $ (124,600.00)

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