Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 66

Spencer Software Company has assets of $850,000 and liabilities of $460,000.
a.repare the owners' equity section of the company's balance sheet under each of the following independent assumptions:
1.he business is organized as a sole proprietorship, owned by Johanna Spencer.
2.he business is organized as a partnership, owned by Johanna Spencer and Mikki Yato.pencer's equity amounts to $240,000.
3.he business is a corporation with 27 stockholders, each of whom originally invested $10,000 in exchange for shares of the company's capital stock.he remainder of the stockholders' equity has resulted from profitable operation of the business.
b.ssume that you are a loan officer at Security Bank.pencer Software Company has applied to your bank for a large loan to finance the development of new products.oes it matter to you whether Spencer is organized as a sole proprietorship, a partnership, or a corporation Explain.