Problem: On January 2, 20X2, Hobbes Company files a petition for relief under Chapter 11 of the Bankruptcy Code. Hobbes had disastrous operating performance during the recent recession and needs time to reestablish profitable operations. The trial balance on January 2, 20X2, follows: Debit Credit Cash $ 16,100 Accounts Receivable (net) 65,400 Inventory 102,500 Property, Plant and Equipment 621,500 Accumulated Depreciation $ 140,400 Accounts Payable 139,400 Notes Payable, 10% 169,400 Bonds Payable, 12% 251,900 Interest Payable 48,700 Preferred Stock 51,100 Common Stock, $1 par 51,100 Additional Paid-In Capital 76,600 Retained Earnings (deficit) 123,100 Total $ 928,600 $ 928,600