Alexa Markowitz is a realtor. She buys and sells preperties on her omm, and she also earns commission as an agent for buyers and sellers. She organized her business as a corporation on March 16, 2020. The business received \(\$ 60,000\) cash from Markowitz and issued common shares in return. Consider the following facts as of March 31, 2020:

a. Markowitz has \(\$ 5,000\) in her personal bank account and \(\$ 14,000\) in the business bank account.

b. Office supplies on hand at the real estate office total \(\$ 1,000\).

c. Markowitz's business spent \(\$ 25,000\) for a ReMax franchise, which entitles her to represent herself as an agent. ReMax is a national affiliation of independent real estate agents. This franchise is a business asset.

d. The business owes \(\$ 60,000\) on a note payable for some undeveloped land acquired for a total price of \(\$ 110,000\)

e. Markowitz owes \(\$ 100,000\) on a personal mortgage on her personal residence, which she acquired in 2005 for a total price of \(\$ 350,000\).

f. Markowitz owes \(\$ 1,800\) on a personal charge account with Holt Renfrew.

g. Markowitz acquired business furniture for \(\$ 10,000\) on March 25 . Of this amount, the business owes \(\$ 6,000\) on accounts payable at March 31.

{Requirements}
1. Identify and explain why some of the data included in items \(a-g\) above are not relevant to preparing the company's balance sheet as at March 31, 2020.
2. Prepare the company's balance sheet as at March 31, 2020.
3. Identify the items on the balance sheet that are relevant to assessing whether the company can pay its short-term debts 4. Does it appear the company can pay its short-term debts? Why?