Use the trial balance presented for Lynch, Inc., in problem (45). Assume that the company will be liquidated and the following transactions will occur:
• of $18,000 are collected with remainder written off.
• All of the company’s inventory is sold for $40,000.
• Additional of $10,000 incurred for various expenses such as utilities and maintenance are discovered.
• The land and building are sold for $71,000.
• The note payable due to the Colorado Savings and Loan is paid.
• The equipment is sold at auction for only $11,000 with the proceeds applied to the note owed to the First National Bank.
• The investments are sold for $21,000.
• Administrative expenses total $20,000 as of July 23, 2013, but no payment has yet been made.
a. Prepare a statement of realization and for the period from March 14, 2013, through July 23, 2013.
b. How much cash would be paid to an unsecured, non-priority creditor that Lynch, Inc., owes a total of $1,000?
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