Olivia Casinelli is a realtor. She buys and sells properties on her own, and she also earns

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Olivia Casinelli is a realtor. She buys and sells properties on her own, and she also earns commissions as a real estate agent for buyers and sellers. She organized her business as a proprietorship on November 24, 20X4. Consider the following facts as of November 30, 20X4.

a. Casinelli owed $55,000 on a note payable for some undeveloped land that had been acquired by her business for a total price of $100,000.

b. Casinelli's business had spent $20,000 for a Century 21 real estate franchise, which enti- tled her to represent herself as a Century 21 agent. Century 21 is a national affiliation of independent real estate agents. This franchise is a business asset.

c. Casinelli owed $60.000 on a personal mortgage on her personal residence. which she acquired in 20X1 for a total price of $150,000.

d. Casinelli had $8,000 in her personal bank account and $22.000 in her business bank account.

e. Casinelli owed $1,800 on a personal charge account with the Neiman Marcus store.

f. Casinelli acquired business furniture for $17.000 on November 25. Of this amount. her business owed $6.000 on open account at November 30. g. Office supplies on hand at the real estate office totaled $1.000. (1) Prepare the balance sheet of the real estate business of Olivia Casinelli. Realtor, at November 30, 20X4. (2) Identify the personal items that would not be reported on the balance sheet of the business.

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Accounting

ISBN: 9780130906991

5th Edition

Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones

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