The bookkeeper of Dave Lundy Tax Service prepared the balance sheet of the company while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the owner's equity amount to achieve this balance. The owner's equity amount, however, is not correct. All other amounts are accurate, but some are out of place.

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DAVE LUNDY TAX SERVICE Balance Sheet Month Ended Ocober 31, 2007 Assets Liabilities Cash $ 5,400 Notes receivable $ 3,000 Insurance expense 300 Interest expense 600 Land 31,500 Office supplies 800 Salary expense 3,300 Accounts receivable 2,600 Office furniture 6,000 Note payable 21,000 Accounts payable 2,300 Utilities expense 2,100 Owner's Equity Dave Lundy, capital 22,900 Total assets $50,900 Total liabilities $50.900