A Trustee Has Been Appointed for Smith Company,which Is Being

question 37

Essay

A trustee has been appointed for Smith Company,which is being liquidated under Chapter 7 of the Bankruptcy Code.The following transactions occurred after the assets were transferred to the trustee:
1.Credit sales by the trustee were $100,000.Cost of goods sold were $72,000,consisting of all the inventory transferred from Smith.
2.The trustee sold all $20,000 worth of marketable securities for $15,000.
3.Receivables collected by the trustee:
Old: $28,000 of the $50,000 transferred
New: $65,000
4.Disbursements by the trustee:
Old current payables: $31,000 of the $65,000 transferred
Trustee's expenses: $6,000
5.Recorded $24,000 depreciation on the plant assets of $120,000 transferred from Smith.
Required:
Prepare a statement of realization and liquidation according to the traditional approach illustrated in the chapter.

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Definitions:

Cognitive Distortions

Irrational thought patterns that people may have about themselves and their environment that can lead to false beliefs and negative thinking.

Overgeneralization

A cognitive distortion where an individual concludes a general rule or pattern from a single incident or a limited set of evidence, often leading to exaggerated conclusions.

Therapeutic Lifestyle

Involves adopting habits and behaviors that promote mental, physical, and emotional health.

Community Mental Health Movement

An approach aimed at improving mental health care access and treatment for individuals within their own communities, emphasizing deinstitutionalization and local support services.