90.2K

Verified Solution

Link Copied!

Farm 1

based on past operation experience, expert advice, and funds at hand, the businesses estimated an additional $ 45,000 to fence in the property, prepare the land & facilities for the business, and acquire needed equipment and supplies to meet current growing market demand. After a recent inventory the business owners were surprised to learn of more assets than previously thought of. The business had the following financial condition: 1) $ 3,000 in supplies for production 2) 4,100 in equipment 3) 6,700 in products inventory 4) 5,500 in cash 5) 3,560 In A/R 6) 9,000 Other family assets used for the business 7) 8,600 in value for a van used for transportation $ 40,460.00 Total Asset But has $ 4,900 in credit card debt & $ 15,000 in Long-Term Debt

Farm 2

based on past operation experience, expert advice, and funds at hand, the business estimate that they need an additional $ 25,000 to prepare facilities for the studio workshop, & acquire needed equipment and supplies to meet growing demand which is well above past returns. After a recent inventory the business owners identified the following assets: 1) $ 2,300 in supplies for production 2) 2,100 in equipment 3) 4,400 in products inventory 4) 6,500 in cash 5) 4,560 In A/R 6) 9,000 Other family assets used for the business 7) 7,400 in value for a van used for transportation $ 36,260.00 Total Asset But has $ 4,900 in credit card debt & $ 10,000 in Long-Term Debt

Question

1.) Create a Balance Sheet for each of the two businesses, with Assets, Liabilities, & Owners Equity using the numbers above. Assume that the two business are owned separately by each of the two offspring, but parents have a 1/3 ownership interest in each of the two business as a partner.

Answer & Explanation Solved by verified expert

See Answer