LO2-2, LO2-4 PROBLEM 2.10A Preparing a Balance Sheet, Discussion of Accounting Principles all of the corporation's outstanding stock. In discussion with Pippin and by inspection of the accounting records, you discover the following facts. 1. The amount of cash, $5,150, includes $3,400 in the company's bank account, $540 on hand in the company's safe, and $1,210 in Pippin's personal savings account. 2. One of the notes receivable in the amount of $500 is an IOU that Pippin received in a poker game several years ago. The IOU is signed by "B.K.", who Pippin met at the game but has not heard from since. 4. Also included in the amount for office furniture is a computer that cost $2,525 but is not on hand because Pippin donated it to a local charity. 6. The asset "Land" was acquired at a cost of $39,000 but was increased to a valuation of $70,000 when one of Pippin's friends offered to pay that much for it if Pippin would move the building off the lot. 7. The accounts payable include business debts of $32,700 and the $3,105 balance owed on Pippin's personal MasterCard. Instructions a. Prepare a corrected balance sheet at November 30 , current year. b. For each of the seven numbered items, use a separate numbered paragraph to explain whether the treatment followed by Pippin is in accordance with generally accepted accounting principles