Jaez Corporation is in the process of going through a reorganization. As of December 31, 2024, the company’s accountant has determined the following information although the company is still several months away from emerging from the bankruptcy proceeding. Net Book Value Fair Value Assets Cash $ 31,000 $ 31,000 Inventory 53,000 55,000 Land 164,000 218,000 Buildings 228,000 268,000 Equipment 162,000 165,000 Allowed Claims Expected Settlement Liabilities as of the date of the order for relief Accounts payable $ 131,000 $ 28,000 Accrued expenses 38,000 12,000 Income taxes payable 30,000 26,000 Note payable (due 2027, secured by land) 108,000 108,000 Note payable (due 2029) 178,000 88,000 Liabilities since the date of the order for relief Accounts payable $ 68,000 Note payable (due 2026) 118,000 Stockholders' equity Common stock $ 208,000 Deficit (241,000) Required: Prepare the balance sheet for Jaez Corporation. Required: Prepare the balance sheet for Jaez Corporation. Note: Negative amounts should be indicated by a minus sign. JAEZ CORPORATION Balance Sheet December 31, 2024 Current assets: $0 Land, buildings, and equipment: 0 Total assets $0 Liabilities not subject to compromise Current liabilities: $0 Long-term liabilities: 0 $0 Liabilities subject to compromise 0 Total liabilities $0 Stockholders' equity Total liabilities and shareholders' (deficit) $0

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

	Allowed Claims	Expected Settlement
Liabilities as of the date of the order for relief
Accounts payable	$ 131,000	$ 28,000
Accrued expenses	38,000	12,000
Income taxes payable	30,000	26,000
Note payable (due 2027, secured by land)	108,000	108,000
Note payable (due 2029)	178,000	88,000
Liabilities since the date of the order for relief
Accounts payable	$ 68,000
Note payable (due 2026)	118,000
Stockholders' equity
Common stock	$ 208,000
Deficit	(241,000)

Prepare the balance sheet for Jaez Corporation.

Prepare the balance sheet for Jaez Corporation.

Note: Negative amounts should be indicated by a minus sign.

JAEZ CORPORATION
Balance Sheet
December 31, 2024
Current assets:


		$0
Land, buildings, and equipment:



		0
Total assets		$0
Liabilities not subject to compromise
Current liabilities:

		$0
Long-term liabilities:


		0
		$0
Liabilities subject to compromise





		0
Total liabilities		$0
Stockholders' equity



Total liabilities and shareholders' (deficit)		$0