need problem 2.9a answered, instructions a and b answered thanks

statement and a statem flows, treat the pe Instructions a. Prepare a balance sheet at Septem for Notes Payable.) b. Prepare a balance sheet at October 6, 2015. Also prepare an income statem of cash flows for the period October 10, 2015. In your statement of cash flo chase of supplies and the payment of accounts payable as operating activities. Assume the notes payable do not come due for several years. Is The Soda Sh financial position on September 30 or on October 6? Explain briefly. oda Shop in a strong ess needs to obtain ation, Anita Spence ollowing balance shee ch concepts as the bus 02-4, LO2-8 ROBLEM 2.9A reparing a Balance Sheet scussion of Accounting Inciples Anita Spencer is the founder and manager of Spencer Playhouse. The business need bank loan to finance the production of its next play. As part of the loan application. An was asked to prepare a balance sheet for the business. She prepared the following bala which is arranged correctly but contains several errors with respect to such concepts ness entity and the valuation of assets, liabilities, and owners' equity. SPENCER PLAYHOUSE BALANCE SHEET SEPTEMBER 30, CURRENT YEAR Assets Liabilities & Owner's Equity $ Cash Accounts Receivable Props and Costumes ........ Theater Building Lighting Equipment Automobile Total $ 21,900 132,200 3,000 27,000 9,400 15,000 $208,500 Liabilities: Accounts Payable Salaries Payable Total liabilities Owner's equity: Anita Spencer, Capital Total 6,000 29,200 35,200 $ 173,300 $208,500 In discussions with Anita Spencer and by reviewing the accounting records of Spencer Play- house, you determine the following facts. 1. The amount of cash. $21.900, includes $15,000 in the company's bank account, 51.900 on hand in the company's safe, and $5,000 in Anita Spencer's personal savings account. 2. The accounts receivable, listed as $132.200, include $7.200 owed to the business by Artistic Tours. The remaining $125,000 is Anita Spencer's estimate of future ticket sales from Sep- tember 30 through the end of the year (December 31). 3. Anita Spencer explains to you that the props and costumes were purchased several days ago for $18,000. The business paid $3.000 of this amount in cash and issued a note payable to Actors' Supply Co. for the remainder of the purchase price ($15.000). As this note is not duc until January of next year, it was not included among the company's liabilities. 4. Spencer Playhouse rents the theater building from Kievits International at a rate of $3,000 a month. The $27.000 shown in the balance sheet represents the rent paid through September 30 of the current year, Kievits International acquired the building seven years ago at a cost of $135.000. 5. The lighting equipment was purchased on September 26 at a cost of $9.400, but the stage manager says that it isn't worth a dime. 6. The automobile is Anita Spencer's classic 1978 Jaguar, which she purchased two years ago for $9,000. She recently saw a similar car advertised for sale at S15.000. She does not use the car in the business, but it has a personalized license plate that reads "PLAHOUS." 7. The accounts payable include business debts of $3.900 and the S2.100 balance of Anita Spencer's personal Visa card. 8. Salaries payable include $25,000 offered to Mario Dane to play the lead role in a new play opening next December and $4,200 still owed to stagehands for work done through September 30. 9. When Anita Spencer founded Spencer Playhouse several years ago, she invested $20,000 in the business. However, Live Theatre, Inc., recently offered to buy her business for $173,300. Therefore, she listed this amount as her equity in the given balance sheet. Instructions a. Prepare a corrected balance sheet for Spencer Playhouse at September 30, current year. b. For each of the nine numbered items, explain your reasoning in deciding whether or not to include the items in the balance sheet and in determining the proper dollar valuation