Spencer Software Company has assets of $850,000 and liabilities of $460,000 a Prepare the owners ' equity section of the company 's balance sheet under each of the following independent assumptions 1 The business is organized as a sole proprietorship, owned by Johanna Spencer 2 The business is orga...

a 1 Owners equity Johanna Spencer capital 390000 850000 in assets 460000 in liabilities 390000 2 Par ...

Spencer Software Company has assets of $850,000 and liabilities of $460,000. a. Prepare the owners' equity section

Question:

Spencer Software Company has assets of $850,000 and liabilities of $460,000.
a. Prepare the owners' equity section of the company's under each of the following independent assumptions:
1. The business is organized as a sole proprietorship, owned by Johanna Spencer.
2. The business is organized as a partnership, owned by Johanna Spencer and Mikki Yato. Spencer's equity amounts to $240,000.
3. The business is a with 27 stockholders, each of whom originally invested $10,000 in exchange for shares of the company's capital stock. The remainder of the stockholders' equity has resulted from profitable operation of the business.
b. Assume that you are a loan officer at Security Bank. Spencer Software Company has applied to your bank for a large loan to finance the development of new products. Does it matter to you whether Spencer is organized as a sole proprietorship, a partnership, or a Explain.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...