Nicholas Miller

Date: 10/14/24

E 18-3

Note Receivable
Inventory Secured by Inventory Items - Recoverable Value
Unsecured portion of the note
Expected Recovery on Every Dollar of Unsecured Claims
Expected Recovery on Unsecured Portion of the Note
Add: Secured Portion
Ram's Expected Recovery on the Note

P18-1

1)
Journal
Date
Mar. 1

Mar. 1

Mar. 1

Mar. 1
Mar. 1

Mar. 1

2)
Sco in Trusteeship
Balance Sheet
For the Period Ended March 31, 2011
Assets:
Cash
Total Assets
Liabilities and Deficit
Accounts Payable
Note Payable - Unsecured
Revenue Received in Advance
Wages Payable
Mortgage Payable
Administrative Expense Payable
Total Liabilities
Less: Estate Deficit
Total Liabilities and Deficit

Sco in Trusteeship
Statement of Cash Receipt and Disbursements
From March 1 to March 31, 2011
Assets
Cash Balance, March 1, 2011

Add: Cash Receipts

Collections of Receivables
Sale of Inventories
Sale of Land and Buildings

Less: Cash Disbursement

Cash Balance, March 31, 2011
 Sco in Trusteeship
Statement of Change in Estate Equity
From March 1 to March 31, 2011
Estate Equity March 1, 2011

Less:
Loss on Uncollectible Receivalbes
Loss on Sale of Inventories
Loss on Slae of Land and Buildings
Loss on Write-Off of Intangible Assets
Administrative Expense Payable
Estate Deficit, March 31, 2011

3)
Journal
Date
Apr. 1

Apr. 1

Apr. 1

Apr. 1

P18-5

1)
Dawn Corporation
Statement of Affairs
For July 10, 2011
 Book Value

Assets

$ 210,000

250,000

80,000
200,000
150,000
10,000

$ 900,000

Liabilities and Stockholders' Equity

$ 50,000
24,000
76,000

100,000

205,000
 350,000
300,000
(205,000)
$ 900,000

2)

Estimate amounts that would be paid to each class of claims

Priority Claims
Administrative Expenses
Accounts Payable
Wages Payable
Taxes Payable
Fully Secured Claims
Note Payable
Partially Secured Claims
Mortgages and Interest Payable

Unsecured
Accounts Payable

Calculated recovery for unsecured non-priority claims

Cash Available
Less: Paid to Priority Claims
Less: Paid to Fully Secured Claims
Less: Paid to Partially Secured Creditors

(A) Cash Available for Unsecured

Unsecured Claims
Partially Secured
Accounts Payable - Nonpriority

(B) Total Unsecured Claims

249,000 / 415,000 = .6

$0.60 per dollar

 $ 200,000
ventory Items - Recoverable Value (50,000)
150,000
very Dollar of Unsecured Claims 0.35
nsecured Portion of the Note 52,500
50,000
ry on the Note 102,500

Journal
Account Debit
Cash 4,000
Accounts Receivable - Net 8,000
Inventories 36,000
Land 20,000
Buildings - Net 100,000
Intangible Assets 26,000
Accounts Payable
Note-Payable - Unsecured
Revenue Received in Advance
Wages Payable
Mortgage Payable
Estate Equity
(To record custody of Sco)
Cash 7,200
Estate Equity 800
Accounts Receivable - Net
(To record collection of receivables
and recognized loss)
Cash 19,400
Estate Equity 16,600
Inventories
(To record sale of inventories
and recognition of loss)
Cash 90,000
Estate Equity 30,000
Land
Buildings - Net
(To record the sale of land and buildings and
recognize loss)
Estate Equity 26,000
Intangible Assets
(To write off intangible assets for a loss)
Estate Equity 8,200
Administrative Expense Payable

Sco in Trusteeship
Balance Sheet
For the Period Ended March 31, 2011

$ 120,600

$ 50,000
40,000
1,000
3,000
80,000
8,200

Sco in Trusteeship
Statement of Cash Receipt and Disbursements
From March 1 to March 31, 2011

$ 7,200.00
19,400
90,000
 Sco in Trusteeship
Statement of Change in Estate Equity
From March 1 to March 31, 2011

Receivalbes $ 800
16,600
nd Buildings 30,000
tangible Assets 26,000
e Payable 8,200

Journal
Account Debit
Mortgage Payable 80,000
Cash
(To record payment of secured creditors)
Administrative Expense Payable 8,200
Revenue Received in Advance 1,000
Wages Payable 3,000
Cash
(To record payment of priority liabilities)
Accounts Payable ((28,400 / 90,000) x 50,000) 15,778
Note Payable - Unsecured ((28,400/90,000) x 40,000) 12,622
Cash
(To record payment to unsecured creditors)
Accounts Payable (50,000 - 15,778) 34,222
Note Payable - Unsecured (40,000 - 12,622) 27,378
Estate Equity
(To write off remianing liabilities to close
trustees records)

Dawn Corporation
Statement of Affairs
For July 10, 2011
 Realizable Value -
Liability Offsets
for Secured
Creditors

Assets
Fully Secured
Accounts Receivalbe - Net $ 160,000
Less: Notes Payable (100,000)

Partially Secured
Land and Buildings - Net 140,000
Less: Mortgage and Interest Payable 205,000

Usecured
Cash
Inventories
Equipment - Net
Intangible Assets

Total Available for Priority and Unsecured

Less: Priority Liabilities

Total Available for Unsecured Creditors

Estimated Deficiency

Liabilities and Stockholders' Equity

Priority Liabilities
Accounts Payable $ 50,000
Wages Payable 24,000
Taxes Payable 76,000
150,000

Fully Secured
Note Payable 100,000
Less: Accounts Receivable - Net (160,000)
(60,000)

Partially Secured
Mortgage and Interest Payable 205,000
 Less: Land and Buildings - Net 140,000
65,000
Unsecured
Accounts Payable
Capital Stock
Retained Earnings (Deficit)

t would be paid to each class of claims

Claims by Priority Ranks Amounts to be Paid

$ 11,000 $ 11,000
50,000 50,000
24,000 24,000
76,000 76,000

100,000 100,000

205,000 140,000
39,000

350,000 210,000
$ 816,000 $ 650,000

or unsecured non-priority claims

$ 650,000
(161,000)
ed Claims (100,000)
cured Creditors (140,000)

Unsecured $ 249,000

$ 65,000
350,000

$ 415,000
(200,000 - 50,000)

(150,000 x 0.35)

(52,500 + 50,000

Credit

50,000
40,000
1,000
3,000
80,000
20,000

8,000

36,000
 20,000
100,000

26,000

8,200

(4,000 + 7,200 + 19,400 + 90,000)

$ 120,600

$ 182,200 (50,000 + 40,000 + 1,000 + 3,000 + 80,000 + 8,200)

61,600 (800 + 16,600 + 30,000 + 26,000 + 8,200 + -20,000)
$ 120,600

$ 4,000.00

116,600 (7,200 + 19,400 + 90,000)

120,600
-
$ 120,600
$ 20,000

81,600 (800 + 16,600 + 30,000 + 26,000 + 8,200)

$ (61,600) (20,000 - 81,600)

Credit

80,000

12,200

28,400

61,600
 Realizable Value
Available for Unsecured
Creditors

$ 60,000 All Calculations are Excel Formulas

80,000
210,000
60,000
-

410,000
150,000

260,000
155,000
$ 415,000
$ 65,000

350,000

$ 415,000

Amounts to be Written Off

All Calculations are Excel Formulas

$ 26,000

140,000
$ 166,000