Wendy Craven is the sole proprietor of a property managementcompany near the cam

Wendy Craven is the sole proprietor of a property managementcompany near the campus of Pensacola Junior College. The businesshas cash of $9000 and furniture that cost $6000 and has a marketvalue of $10000. Debts include accounts payable of $5000. Wendyspersonal home is valued at $350000 and her personal bank accounthas $1400.Requirements:1. Consider the accounting principles in the chapter and define theprinciple that best matches the situation.a. Wendys personal assets are not recorded on the propertymanagement companys balance sheet.b. Wendy records furniture at its cost of $6000 not its marketvalue of $10000.c. Wendy does not make adjustments for inflations.d. The account payable of $5000 is documented by a statement fromthe furniture company showing the business still owes $5000 on thefurniture. Wendys friend thinks she should only owe about $4000.The account payable is recorded at $5000.2. How much equity is in the business?