Your friend, Daniel Nat, recently began work as the lead accountant for Asheville Company. Dan prepared the following balance sheet for December 31, 20Y5:

Asheville Company Balance Sheet December 31, 20Y5

Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000
Accounts payable.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   10,000
Accounts receivable.  . . . . . . . . . . . . . . . . . . . . . . . . . . .   12,500
Cash. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Common stock. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .   115,000
Total assets. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .  $247,500

Liabilities
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  120,000
Wages payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  . 2,500
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $247,500

White a brief memo to Daniel explaining the errors in Asheville Company’s balance sheet and provide the correct presentation for the balance sheet.