Dan Shoe, the manager of STRIDES Inc., prepared the company's balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, Shoe knew that the balance sheet should balance, so he plugged in the shareholders' equity amount needed to achieve this balance. The shareholders' equity amount is not correct. All other amounts are accurate.

Requirements
1. Prepare the correct balance sheet and date it properly. Compute total assets, total liabilities, and shareholders' equity.
2. Is STRIDES Inc. actually in better or worse financial position than the erroneous balance sheet reports? Give the reason for your answer.
3. Identify the accounts listed on the incorrect balance sheet that are not reported on the balance sheet. State why you excluded them from the correct balance sheet you prepared for Requirement 1. On which financial statement should these accounts appear?

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STRIDES Inc. Balance Sheet For the Month Ended July 31, 2014 Assets Liabilities Cash Store fixtures Accounts payable Rent expense Salaries expense Land Advertising expense. $2 5,000 10,000 16,000 4,000 15,000 44,000 3,000 Accounts receivable Sales revenue Interest expense Note payable Total $20,000 80,000 800 9,000 109,800 Shareholders' Equity Shareholders' equity Total liabilities and 7,200 Total assets $117,000 shareholders' equity.. $117,000