The bookkeeper of Jackson Travel Agency, Inc., prepared the balance sheet of the com-pany while the accountant was ill. The balance sheet contains numerous errors. In particular, thebookkeeper knew that the balance sheet should balance, so he plugged in the stockholders' equityamount needed to achieve this balance. The stockholders' equity amount, however, is not correct.All other amounts are accurate.

Required1. Prepare the correct balance sheet, and date it correctly. Compute total assets, total liabilities,and stockholders' equity.2. Identify the accounts listed above that should not be presented on the balance sheet and statewhy you excluded them from the correct balance sheet you prepared for Requirement 1.

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JACKSON TRAVEL AGENCY, INC. BALANCE SHEET MONTH ENDED OCTOBER 31, 19X7 Assets Liabilities Cash... $3,400 Notes receivable.. $14,000 Advertising expense. 300 Interest expense. 2,000 Land. 40,500 Office supplies. 800 Salary expense. 3,300 Accounts receivable. 2,600 Office furniture.. 6,700 Note payable... 30,000 Accounts payable. 3,000 Stockholders' Equity Utilities expense.. 2,100 Stockholders' equity. 9,900 Total assets. $59,300 Total liabilities. $59,300