Carla Hilton is a realtor. She organized the business as a corporation on December 16, 2013. The business received $55,000 cash from Hilton and issued common stock. Consider the following facts as of December 31, 2013.
a. Hilton has $16,000 in her personal bank account and $66,000 in the business bank account.
b. Hilton owes $6,000 on a personal charge account with Clothing Outlet.
c. Hilton acquired business furniture for $45,000 on December 24. Of this amount, the business owes $32,000 on accounts payable at December 31.
d. Office supplies on hand at the real estate office total $7,000.
e. Hilton’s business owes $45,000 on a note payable for some land acquired for a total price of $118,000.
f. Hilton’s business spent $21,000 for a Your Home Realty franchise, which entitles her to represent herself as an agent. Your Home Realty is a national affiliation of independent real estate agents. This franchise is a business asset.
g. Hilton owes $100,000 on a personal mortgage on her personal residence, which she acquired in 2003 for a total price of $400,000.

Requirements
1. Prepare the balance sheet of the real estate business of Carla Hilton Realtor, Inc., at December 31, 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 balance sheet of the business.