Natalie Williams is a realtor. She organized her business as a corporation, Natalie Williams, Realtor, P.C., by investing \($27,000\) cash. The business issued common stock to her. Consider the following facts at August 31, 2010.

a. The business owes \($57,000\) on a note payable for land that the business acquired for a total price of $80,000.

b. The business spent \($27,000\) for a Linka Banker real estate franchise, which entitles the business to represent itself as a Linka Banker office. This franchise is a business asset.

c. Williams owes \($40,000\) on a personal mortgage for her personal residence, which she acquired in 2010 for a total price of $130,000.

d. Williams has \($6,000\) in her personal bank account, and the business has \($13,000\) in its bank account.

e. Williams owes \($3,000\) on a personal charge account with Chico’s.

f. The office acquired business furniture for \($17,000\) on August 25. Of this amount, the business owes \($8,000\) on account at August 31.

g. Office supplies on hand at the real estate office total $1,100.

Requirements

1. Natalie was concerned about liability exposure. Which corporate feature limits Natalie’s personal liability?
2. Prepare the balance sheet of the real estate business of Natalie Williams, Realtor, P.C., at August 31, 2010.
3. Identify the personal items that would not be reported on the business records.