Beth Plum is a realtor. She organized her business as a corporation, Beth Plum, Realtor, P.C., by investing \($23,000\) cash. The business issued common stock to her.

Consider the following facts at November 30, 2010:

a. The business owes \($61,000\) on a note payable for land that the business acquired for a total price of $85,000.

b. The business spent \($30,000\) for a Cinko Banker real estate franchise, which entitles the business to represent itself as a Cinko Banker office. This franchise is a business asset.

c. Plum owes \($50,000\) on a personal mortgage for her personal residence, which she acquired in 2010 for a total price of $170,000.

d. Plum has \($5,000\) in her personal bank account, and the business has \($10,000\) in its bank account.

e. Plum owes \($1,000\) on a personal charge account with Chico’s.

f. The office acquired business furniture for \($15,000\) on November 25. Of this amount, the business owes \($1,000\) on account at November 30.

g. Office supplies on hand at the real estate office total $500.

Requirements

1. Beth was concerned about liability exposure. Which corporate feature limits Beth’s personal liability?

2. Prepare the balance sheet of the real estate business of Beth Plum, Realtor, P.C., at November 30, 2010.

3. Identify the personal items that would not be reported on the business records.