help The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which thecompany is to file a voluntary petition of bankruptcy:CashAccounts receivable (net)InventoryLandBuildings (net)Equipment (net)Total assetsLIMESTONE COMPANYBalance SheetJune 3, 2020AssetsLiabilities and EquitiesAccounts payable.Notes payable-current (secured by equipment)Notes payable-long-term (secured by land and buildings)Common stockRetained earningsTotal liabilities and equities4,00077,000112,000112,000312,000204,000$ 821,000$ 122,000274,000202,000132,00091,000$ 821,000Additional InformationIf the company is liquidated, administrative expenses are estimated at $30,000.• The accounts payable figure includes $22,000 in wages earned by the company's 12 employees during May. No one earned morethan $3,400.• Liabilities do not include taxes of $26,000 owed to the U.S. government.. Company officials estimate that 30 percent of the accounts receivable will be collected in a liquidation and that the inventorydisposal will bring $92,000. The land and buildings will be sold together for approximately $334,000; the equipment should bring$142,000 at auction.Prepare a statement of financial affairs for Limestone Company as of June 3, 2020.

Preparation of Statement of Financial Affairs for limestone company are as follows

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. Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets Liabilities and Equities Accounts payable. Notes payable-current (secured by equipment) Notes payable-long-term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities $ 4,000 77,000 112,000 112,000 312,000 204,000 $ 821,000 $ 122,000 274,000 202,000 132,0 91,000 $ 821,000

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. Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets LIMESTONE COMPANY Balance Sheet June 3, 2020 Assets Liabilities and Equities Accounts payable. Notes payable-current (secured by equipment) Notes payable-long-term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities $ 4,000 77,000 112,000 112,000 312,000 204,000 $ 821,000 $ 122,000 274,000 202,000 132,0 91,000 $ 821,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9PA: Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables....

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