Objectives : Apply underlying accounting concepts; evaluate business operations; construct a balance sheet) Nancy Boyd is a realtor. She organized her business as a corporation on September 16, 2015. The business received $80,000 from Boyd and issued common stock. Consider these facts as of September 30, 2015.
a. Boyd has $22,000 in her personal bank account and $56,000 in the business bank account.
b. Boyd owes $2,000 on a personal charge account with Ann Taylor Clothing Stores.
c. Boyd acquired business furniture for $50,000 on September 25. Of this amount, the business owes $41,000 on accounts payable at September 30.
d. Office supplies on hand at the real estate office total $3,000.
e. Boyd's business owes $86,000 on a note payable for some land acquired for a total price of $117,000.
f. Boyd's business spent $25,000 for a Nationwide Realty franchise, which entitles her to represent herself as an agent. Nationwide Realty is a national affiliation of independent real estate agents. This franchise is a business asset.
g. Boyd owes $124,000 on a personal mortgage on her personal residence, which she acquired in 2009 for a total price of $375,000.