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. Identify the accounts listed on the incorrect balance sheet that should not be reported on the balance sheet. On which financial statement should these accounts appear?
2. Prepare the correct balance sheet and date it properly.
3. Is STRIDES Inc. actually in better or worse financial position than the erroneous balance sheet reports? Give the reason for your answer.

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A STRIDES Inc. Balance Sheet For the Month Ended July 31, 2020 Assets B C D 2 Liabilities 3 Cash $ 25,000 Accounts receivable 4 Store fixtures 10,000 Sales revenue 5 Accounts payable 16,000 Interest expense $ 20,000 80.000 800 6 Rent expense 4,000 Note payable 7 Salaries expense 15,000 Total 9,000 109,800 8 Land 44,000 9 Advertising expense 3,000 Shareholders' Equity 10 Shareholders' equity 7,200 Total liabilities and 11 Total assets $117,000 shareholders' equity $ 117,000 12