Page 4 Women's Leadership- Leading by the Numbers Problem Set 1: Basic Accounting Model L Problem 4 Mike Cassell is a realtor. He buys and sells properties on his own, and also earns commission as an agent for buyvers and sellers. He organized his business as a corporation on March 10,20x1, The business received $75.000 cash from Cassell and issued common stock. Consider the following facts as of March 31, 20x1: Cassell has $9,000 in his personal bank account and $16,000 in the business bank account. Office supplies on hand at the real estate office total $1,000. Cassell's business spent $35,000 for a Century 21 franchise, which entitles him to represent himself as an agent. Century 21 is a national affiliation of independent real estate agents. This franchise is a business asset. Cassell's business owes $33,000 on a note payable for some undeveloped land acquired for a total price of $100,000. Cassell owes $65,000 on a personal mortgage on his personal residence, which he acquired in 2002 for a total price of $190,000. Cassell owes S300 on a personal charge account with Sears. Cassell acquired business furniture for $12,000 on March 26. Of this amount, Cassell's business owes $6,000 on open account at March 31 a. b. c. d. e. f. Required 1. Prepare the balance sheet of the real estate business of Mike Cassell Realtor, Inc., at March 31, 20x1. 2. Does it appear that Cassell's realty business can pay its debts? How can you tell? 3. Identify the personal items given in the preceding facts that would not be reported on the balance sheet of the business