Billy Higgins is a realtor. He organized his business as a corporation on June 16, 2017. The

Question:

Billy Higgins is a realtor. He organized his business as a on June 16, 2017. The business received $65,000 from Higgins and issued common stock. Consider these facts as of June 30, 2017.
a. Higgins has $14,000 in his personal bank account and $58,000 in the business bank account.
b. Higgins owes $5,200 on a personal charge account with a local department store.
c. Higgins acquired business furniture for $ 19,600 on June 24. Of this amount, the business owes $4,000 on at June 30.
d. Office supplies on hand at the real estate office total $4,000.
e. Higgins' business owes $136,000 on a note payable for some land acquired for a total price of $157,000.
f. Higgins' business spent $15,000 for an American Realty franchise, which entitles him to represent himself as an agent. American Realty is a national affiliation of independent real estate agents. This franchise is a business asset.
g. Higgins owes $151,000 on a personal mortgage on his personal residence, which he acquired in 2012 for a total price of $423,000.
Requirements
1. Prepare the of the real estate business of Billy Higgins Realtor, Inc., at
June 30, 2017.
2. Does it appear that the realty business can pay its debts? How can you tell?
3. Identify the personal items given in the preceding facts that should not be reported on the of the business.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...