Spencer Software Company has assets of $850,000 and liabilities of $460,000.

a.
Prepare the owners' equity section of the company's balance sheet under each of the following independent assumptions:

1. The business is organized as a sole proprietorship, owned by Johanna Spencer.

2.
The business is organized as a partnership, owned by Johanna Spencer and Mikki Yato. Spencerâs equity amounts to $240,000.

3.
The business is a corporation with 27 stockholders, each of whom originally invested $10,000 in exchange for shares of the companyâs capital stock. The remainder of the stockholdersâ equity has resulted from profitable operation of the business.

Question

Spencer Software Company has assets of $850,000 and liabilities of $460,000.

a.	Prepare the owners' equity section of the company's balance sheet under each of the following independent assumptions:
	1.	The business is organized as a sole proprietorship, owned by Johanna Spencer.
	2.	The business is organized as a partnership, owned by Johanna Spencer and Mikki Yato. Spencerâs equity amounts to $240,000.
	3.	The business is a corporation with 27 stockholders, each of whom originally invested $10,000 in exchange for shares of the companyâs capital stock. The remainder of the stockholdersâ equity has resulted from profitable operation of the business.

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