LO 1,4 C1-75. (Learning Objectives 1, 4: Explain accounting language; evaluate business opera- tions through financial statements) Two businesses, Queens Service Corp. and Insley Sales Co., have sought business loans from you. To decide whether to make the loans, you have requested their balance sheets. 2 Queens Service Corp. Balance Sheet August 31, 2019 Assets Cash Accounts receivable Land Furniture Equipment 3 4 5 6 7 $ 50,000 80,000 130,000 Liabilities 5,000 Accounts payable 10,000 Note payable 75,000 Total liabilities 15,000 Stockholders' Equity 45,000 Stockholders' equity Total liabilities and 150,000 stockholders' equity 20,000 150,000 9 Total assets + $ $ 10 A1 Insley Sales Co. Balance Sheet August 31, 2019 Assets Cash Accounts receivable Merchandise inventory Building $ $ 3 4 5 6 6.000 9,000 15,000 Liabilities 5,000 Accounts payable 10,000 Note payable 15,000 Total liabilities 35,000 Stockholders' Equity Stockholders' equity Total liabilities and 65,000 stockholders' equity 50,000 9 10 Total assets $ $ 65,000 Requirement 1. Using only these balance sheets, to which entity would you be more comfortable lending money? Explain fully, citing specific items and amounts from the respective balance sheets