OLD TOWN PLAYHOUSE\ Melanie Austin, owner and manager of Old town Playhouse, needs to obtain a bank loan to finance the production of the company's next play. As part of the loan application, Austin was asked asked to prepare a balance sheet, which is arranged correctly but contains several errors with respect to such concepts as the business entity and the valuation of assets, liabilities, and owner's equity.\ OLD TOWN PLAYHOUSE\ Balance Sheet\ September 30, 2019\ In discussion with Austin and by reviewing the accounting records of Old Town Playhouse, you discover the following facts:\ The amount of cash,

$18,600

, includes

$12,000

in the company's bank account,

$2,100

on hand in company's safe, and

$4,500

in Austin's personal savings account.\ Accounts receivable includes

$6,200

owed to the business by Artistic Tours. The remaining

$150,000

is Austin's estimate of the future ticket sales from September 30 through the end of the year (December 31).\ Austin explains that the props and costumes were purchased several days ago for

$14,800

. The business paid

$1,800

of this amount in cash and issued a note payable to Actors' Supply\ Company for the remainder of the purchase price

($13,000)

. As this note will not be paid until January of next year, it is not included among the company's liabilities.\ Old Town Playhouse rents the theater building from Kievits International at a rate of

$1,500

per month. The

$13,500

represents the rent paid through September 30 of the current year. Kievits International acquired the building seven years ago at a cost of

$500,000

.\ The lighting equipment was acquired on September 26 at a cost of

$8,500

, but the stage manager says that the lighting equipment isn't worth a dime.\ The automobile is Austin's classic 1955 Porsche, which she purchased two years ago for

$9,600

. She recently saw a similar car advertised for sale at

$12,000

. She does not use the car in the business, but it has a personalized license plate which reads "PLAHOUS."\ The accounts payable include business debts of

$3,700

and the

$900

balance of Austin's VISA card.\ Salaries payable includes

$25,000

offered to Mario Dane to play the lead role in a new play opening next December, and also,

$3,200

still owed to stage hands for work done through September 30 .\ When Austin founded Old Town Playhouse four years ago, she invested

$10,000

in the business. She has shown this amount as her owner's equity in order to comply with the cost principle. However, Live Theater, Inc. has offered to buy her business for

$30,000

, and she believes that perhaps the owner's equity should be changed to this amount.\ lents:\ Prepare a corrected balance sheet for OId Town Playhouse at September 30, 2019.\ For each of the nine items above, explain your reasoning in deciding whether to include or add to the items in the balance sheet that Melanie created. Also, determine the correct amount that should be used for each item you would include.

OLD TOWN PLAYHOUSE Melanie Austin, owner and manager of Old town Playhouse, needs to obtain a bank loan to finance the production of the company's next play. As part of the loan application, Austin was asked asked to prepare a balance sheet, which is arranged correctly but contains several errors with respect to such concepts as the business In discussion with Austin and by reviewing the accounting records of Old Town Playhouse, you aiscover the following facts: 1. The amount of cash, $18,600, includes $12,000 in the company's bank account, $2,100 on hand in company's safe, and $4,500 in Austin's personal savings account. 2. Accounts receivable includes $6,200 owed to the business by Artistic Tours. The remaining $150,000 is Austin's estimate of the future ticket sales from September 30 through the end of the year (December 31). Austin explains that the props and costumes were purchased several days ago for $14,800. The business paid $1,800 of this amount in cash and issued a note payable to Actors' Supply Company for the remainder of the purchase price ($13,000). As this note will not be paid until January of next year, it is not included among the company's liabilities. Old Town Playhouse rents the theater building from Kievits International at a rate of $1,500 per month. The $13,500 represents the rent paid through September 30 of the current year. Kievits International acquired the building seven years ago at a cost of $500,000. The lighting equipment was acquired on September 26 at a cost of $8,500, but the stage manager says that the lighting equipment isn't worth a dime. The automobile is Austin's classic 1955 Porsche, which she purchased two years ago for $9,600. She recently saw a similar car advertised for sale at $12,000. She does not use the car in the business, but it has a personalized license plate which reads "PLAHOUS." The accounts payable include business debts of $3,700 and the $900 balance of Austin's VISA card. Salaries payable includes $25,000 offered to Mario Dane to play the lead role in a new play opening next December, and also, $3,200 still owed to stage hands for work done through September 30 . When Austin founded Old Town Playhouse four years ago, she invested $10,000 in the business. She has shown this amount as her owner's equity in order to comply with the cost principle. However, Live Theater, Inc. has offered to buy her business for $30,000, and she believes that perhaps the owner's equity should be changed to this amount. ients: Prepare a corrected balance sheet for Old Town Playhouse at September 30, 2019. For each of the nine items above, explain your reasoning in deciding whether to include or add to the items in the balance sheet that Melanie created. Also, determine the correct amount that should be used for each item you would include