Reports

a. Statement of Affairs
b. State of Realization and Liquidation

Classification of Assets in Statement of Affairs

1. Assets pledged to fully secured creditors
2. Assets pledged to partially secured creditors
3. Free Assets

Classification of Liabilities in Statement of Affairs

1. Fully secured liabilities
2. Partially secured liabilities
3. Unsecured liabilities with priority
3.1 Salaries Payable
3.2 Legal Expenses
3.3 Taxes
4. Unsecured liabilities withouot priority
 Enkiks Co.
Balance Sheet
October 1, 2020
Current Assets Current Liabilities
Cash 200,000.00 Note Payable- Bank 800,000.00
AR 120,000.00 Interest Payable- Bank 100,000.00
Inventory 25,000.00 Interest Payable- Insurance 250,000.00
Supplies 40,000.00 Accounts Payable 300,000.00
Total 385,000.00 Total 1,450,000.00

Non-Current Assets Non-Current Liabilities

Land 750,000.00 Note Payable- Insurance 700,000.00
Building 1,000,000.00 Total 700,000.00
Equipment 500,000.00
Total 2,250,000.00 Stockholder's Equity Interest Payable- Insu
Common Stock 650,000.00
Deficit (165,000.00)
Total Assets 2,635,000.00 Total Liabilities and Equity 2,635,000.00

Additional Information:
1. Accounts Receivable is to be realized for 20,000.
2. The inventory can be sold for 10,000.
3. Realizable value of supplies is 5,000.
4. Land has a market value of 760,000.
5. Building has a market value of 750,000.
6. Equipment has a market value of 200,000.
7. Estimated liquidation expenses is 5,000.
8. Notes Payable- Bank is secured by Land and Building.
9. Notes Payable- Insurance is secured by equipment.
 BV NRV
Cash 200,000.00 200,000.00 FA
AR 120,000.00 20,000 FA
Inventory 25,000.00 10,000 FA
Supplies 40,000.00 5,000 FA
Land 750,000.00 760,000 AFS
Building 1,000,000.00 750,000 AFS
Equipment 500,000.00 200,000 APS
1,945,000.00
Note Payable- Bank 800,000.00 800,000.00 LFS
Interest Payable- Bank 100,000.00 100,000.00 LFS
Interest Payable- Insurance 250,000.00 250,000.00 LPS
Accounts Payable 300,000.00 300,000.00 UNP
Note Payable- Insurance 700,000.00 700,000.00 LPS

Liq Exp 5,000 UP

2,155,000.00
Estimated Deficiency (210,000.00)

Cash 200,000
AR 500,000
Equipment 600,000
Land 1,000,000
Estate Deficit 450,000
AP 700,000
SP 800,000
 NP 500,000
LP 750,000

Estate Deficit 30,000

Interest Payable 30,000

Cash 280,000
AR 280,000

Cash 150,000
Estate Deficit 450,000
Equipment 600,000

Notes Payable 500,000

Cash 150,000
Estate Deficit 350,000

Cash 1,400,000
Land 1,000,000
Estate Deficit 400,000

Loan Payable 750,000

Interest Payable 30,000
Cash 780,000

Accounts Payable 350,000

Salaries Payable 200,000
Cash 550,000

Estate Deficit 240,000

Cash 240,000
Estimated Recovery % of UNP= Net Free Assets/ UNP

FA 235,000.00
FA from excess of AFS 610,000
Total Free Assets 845,000.00
Liquidation Expense (5,000.00)
Net Free Assets 840,000.00
Recovery %
Accounts Payable 300,000.00 0.8
UNP 750,000.00 0.8
Total UNP 1,050,000.00

Est.% Recovery of UNP 0.8

How much is to be received by Partially Secured Creditors?

From Equipment 200,000
From Estd Recovery % UNP 600,000
Total 800,000

Non-Cash Assets
DR CR
Assets to be realized Assets realized
Assets aquired Assets not realized

Liabilities
Liabilities liquidated Liabilities to be liquidated
Liabilities not liquidated Liabilities assumed
 Supplementary Items
Expenses Gain

Estate Deficit 60,000

 Assets to be received by UNP
240,000.00
600,000.00
840,000.00 210,000.00

Non-Cash Assets
500,000 280,000
600,000 150,000
1,000,000 1,400,000
220,000
to be liquidated 2,100,000 2,050,000
50,000 Loss
 Liabilities
150,000 700,000
780,000 800,000
350,000 500,000
200,000 750,000
350,000 30,000
600,000

2,430,000 2,780,000
Gain 350,000

Supplementary Items
240,000
240,000 Loss

Net Gain 60,000