B&L. Landscapes, Inc. Mini Practice Part I Bil Graham started his career mowing lawns for neighbors while he was in junior high school. Bill worked summers for the local golf course while he was in high school and after he graduated, he started his own lawn care business, Bill's Lawn Care. In addition to lawn care, he also sells two types of fertilizer. Bill is ready to expand his business and wants to add sprinkler systems to his product offering Larry Miller has an established sprinkler system business and they have agreed to merge their two businesses together. They considered the partnership form of business but have decided to incorporate. You are taking an accounting class at the local community college and have been helping Bll keep the accounting records for his business. He has asked you to stay on and establish and maintain the accounting records for the new company, B&L Landscapes, Inc. Bill and Larry have hired an attorney and filed the incorporation paperwork with the state of Colorado. In the articles of incorporation, they are authorized to issue 150,000 shares of S1 par value common stock and 5,000 shares of $100 par value, 5%, non-cumulative, non- participating preferred stock. The new corporation will be created on July 1, 2014. The fair value of the assets and liabilities of both companies are as followS: Bill's Lawn ccount Accounts Receivable Insurance ildin ccounts Payable otes Payable(due 4/30 202 5,000 Larry's Sprinkler Systems Accounts Receivable id Insurance 63 24 PM Page 1 of 3