The following balance sheet was prepared for Crane Company on December 31, 2009: Crane Company Balance Sheet December 31, 2009 Cash $33,000 Accounts…


The subjoined poise quibble was compliant for Crane Society on December 31, 2009: Crane Society Poise Quibble December 31, 2009 Cash $33,000 Accounts Receivable $52,500 Less: Allowance for Uncollectibles $3,800 $48,700 Inventory $71,000 Wealth and Equipment (net) $142,000 Goodallure $20,000 Total Assets $314,700 Accounts Payable $66,000 10% Bonds Payable, due 06/30/12 $130,000 Contemptible Stock, $20 par, 10,000 shares ungathered $200,000 Retained Earnings (deficit) ($81,300) Total Equities $314,700 Crane Society has had easy difficulties, accumulating a nonpayment pit different years antecedently 2009. During 2009, however, Crane reported a significantly inferior easy forfeiture, and prospects for the forthcoming are proportionately radiant. Although address and accumulationholders are optimistic environing the forthcoming, it is almost sure that the society allure delaydrawal the needful inaugurated consummate to touch corporeal obligations and expected forthcoming development. In volatile of these postulates, Crane has filed for reorganization under Chapter 11 of the Bankruptcy Reform Act of 1978. The reorganization guile, the stipulations of which are set out under, has ordinary the laudation of accumulationholders, creditors, and the seek. Stipulations of the reorganizations guile are as follows: 1. Accounts receivable are to be written down to $40,000 to mirror their exoteric expected realizable treasure. 2. Inventory is impartially treasured, but goodallure is to be written off, and wealth and equipment is to be written down to its impartial treasure of $118,000. 3. The $20 par treasure contemptible accumulation is to be replaced delay $4 par treasure contemptible accumulation on a share-for-share account in prescribe to cause some reorganization consummate, which allure be used to eluciage the nonpayment. 4. The bondholders admit to vary their bonds for new 8% bonds in the similar manliness quantity, but delay a due age of June 30, 2016, and 6,000 shares of $4 par treasure contemptible accumulation. The accumulation allure be disjoined ratably incompact the bondholders. The impartial treasure of the contemptible accumulation is similar to its par treasure. 5. Accounts payable are expected to be remunerated in generous, although creditors possess admitd to augment due ages by as considerable as six months. 6. Any accumulated nonpayment is to be elucidated. A. Prepare register entries to proceedings the proceeds of the reorganization guile. B. Prepare a poise quibble as it would answer instantly behind the reorganization.

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