Financial reporting during bankruptcy—Distributions to creditors

Hol is in bankruptcy and is being liquidated by a court appointed trustee. The financial report that follows was prepared by the trustee just before the final cash distribution:

Assets

Cash

$ 200,000

Approved Claims

Mortgage payable (secured by property that was

sold for $100,000)

$ 160,000

Accounts payable, unsecured

100,000

Administrative expenses payable, unsecured

16,000

Salaries payable, unsecured

4,000

Interest payable, unsecured

20,000

Total approved claims

$ 300,000

The administrative expenses are for trustee fees and other costs of administering the debtor corporation’s estate.

REQUIRED: Show how the $200,000 cash will be distributed to holders of each of the claims.