The bookkeeper of Murtz Auction Co. prepared the balance sheet of the company whilethe accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeperknew that the balance sheet should balance, so he plugged in the stockholders' equity amountneeded to achieve this balance. The stockholders' equity amount, however, is not correct. All otheramounts 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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MURTZ AUCTION CO. BALANCE SHEET MONTH ENDED JULY 31, 19X3 Assets. Liabilities Cash $ 3,000 Accounts receivable. $ 3,000 Office supplies. Land.. 1,000 44,000 Service revenue. 59,000 Property tax expense. 800 Advertising expense. 2,500 Accounts payable.. 9,000 Office furniture. 10,000 Stockholders' Equity Note payable. 16,000 Rent expense. 4,000 Stockholders' equity. 8,700 Total assets... $80,500 Total liabilities. $80,500