Reva Hamlet is a realtor. She organized her business as a corporation on September 16, 2013. The

Question:

Reva Hamlet is a realtor. She organized her business as a on September 16, 2013. The business received $90,000 from Hamlet and issued common stock. Consider these facts as of September 30, 2013.
a. Hamlet has $20,000 in her personal bank account and $71,000 in the business bank account.
b. Hamlet owes $9,000 on a personal charge account with Strawberries Music Store.
c. Hamlet acquired business furniture for $50,000 on September 25. Of this amount, the business owes $37,000 on at September 30.
d. Office supplies on hand at the real estate office total $5,000.
e. Hamlet’s business owes $41,000 on a note payable for some land acquired for a total price of $112,000.
f. Hamlet’s business spent $26,000 for a Hometown Realty franchise, which entitles her to represent herself as an agent. Hometown Realty is a national affiliation of independent real estate agents. This franchise is a business asset.
g. Hamlet owes $120,000 on a personal mortgage on her personal residence, which she acquired in 2003 for a total price of $380,000.

Requirements
1. Prepare the of the real estate business of Reva Hamlet Realtor, Inc., at September 30, 2013.
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.

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