Reference no: EM132625648

Question - Andrea Scarlett is a realtor. She organized her business as a corporation, Andrea Scarlett, Realtor, P.C. (Professional Corporation) 1. The business owes $61,000 on a note payable for land that the business acquired for a total price of $83,000. 2. The business spent $23,000 for a Zinka Banker real estate franchise, which entitles the business to represent itself as a Zinka Banker office. This franchise is a business asset. 3. Scarlett owes $80,000 on a personal mortgage for her personal residence, which she acquired in 2012 for a total price of $160,000. 4. Scarlett has $5,000 in her personal bank account, and the business has $9,000 in its bank account. 5. Scarlett owes $£(Last Four digit of your student ID)on a personal charge account with Chico's. 6. The office acquired business furniture for $15,000 on September 25. Of this amount, the business owes $2,000 on account at September 30. 7. Office supplies on hand at the real estate office total $1,300. 8. Paid $900 cash for ink cartridges for the printer 7

Required -

(a) Analyze the effects of the above transactions.

(b) Prepare the Income Equity statement.