Response to the following problem:
Lou Phillips is a realtor. She organized her business as a proprietorship on November 24, 20X4. Consider the following facts at November 30, 20X4.
a. Phillips owed $55,000 on a note payable for some undeveloped land that had been acquired by her business for a total price of $100,000.
b. Phillips' business had spent $20,000 for a Century 21 real estate franchise, which entitled her to represent herself as a Century 21 agent. This franchise is a business asset.
c. Phillips owed $60,000 on a personal mortgage on her personal residence, which she acquired in 20X1 for a total price of $150,000.
d. Phillips had $8,000 in her personal bank account and $7,000 in her business bank account.
e. Phillips owed $1,800 on a personal charge account with the Neiman-Marcus store.
f. Phillips acquired business furniture for $17,000 on November 25. Of this amount, her business owed $6,000 on account at November 30.
g. Office supplies on hand at the real estate office totaled $1,000.
1. Prepare the balance sheet of the real estate business of Lou Phillips, Realtor, at November 30, 20X4.
2. Identify the personal items that would not be reported on the balance sheet of the business.