Jennifer Grant is a realtor. She buys and sells properties on her own account, and she also earns commissions as a real estate agent for buyers and sellers. Her business was organized on November 24, 20X1, as a sole proprietorship. Grant also owns her own personal residence.
Consider the following on November 30, 20X1:
1. Grant owes $85,000 on a mortgage on some undeveloped land, which her business acquired for a total price of $170,000.
2. Grant had spent $18,000 cash for a Century 21 real estate franchise. Century 21 is a national affiliation of independent real estate brokers. This franchise is an asset.
3. Grant owes $100,000 on a personal mortgage on her residence, which she acquired on November 20, 20X3, for a total price of $180,000.
4. Grant owes $3,800 on a personal charge account with Nordstrom’s .
5. Grant acquired business furniture for $17,000 on November 25, for $6,000 on open account, plus $11,000 of business cash. On November 26, Grant sold a $1,000 business chair for $1,000 to her next-door business neighbor for cash.
6. On November 28, Grant hired her first employee, Aaron Rubenstein. He was to begin work on December 1. Grant was pleased because Rubenstein was one of the best real estate salesmen in the area. On November 29, Rubenstein was killed in an automobile accident.
7. Grant’s balance at November 30 in her business checking account after all transactions was $6,000.
Prepare a balance sheet as of November 30, 20X1, for Jennifer Grant, realtor.