On January 1, 2019, three individuals organized " West Company as a corporation. Each individual invested $10,000 cash in the business. On December 31, 2019, they prepared a list of resources owned (assets) and a list of debts (liabilities) to support the company's request for a loan of $70,000 submitted to a local bank. None of the three investors had studied accounting. The two lists prepared were as follows:

Required

Prepare?a short?memo indicating?the?following:1. Which of these items do not belong on the statement of financial position (bear in mind that the company is considered to be separate from the owners)?2. What additional questions would you raise about measurement of items on the lists? Explain the basis for each question.3. If you were advising the local bank on its loan decision, which amounts on the lists would create special concerns? Explain the basis for each concern and include any recommendations that youhave.4. In vie,iv of yow? responses to (1) and (2), calculate the amount of shareholders' equity as at December 31, 2019. Show your computations.

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Company resources Cash $ 12,000 Service supplies inventory (on hand) Service trucks (four practically new) Personal residences of organizers (three houses) 7,000 68,000 190,000 Service equipment used in the business (practically new) 30,000 15,000 Amounts due from customers (for services already completed) Total $322,000 Company obligations $ 19,000 Unpaid wages to employees Unpaid taxes Owed to suppliers 8,000 10,000 Owed on service trucks and equipment (to a finance company) Loan from organizer 50,000 15,000 $102,000 Total