3. The following balance sheet has been prepared, and when you look at it you again see an error.

Balance Sheet

December 31

Assets

Cash

$50,000

Accounts receivable

20,000

Equipment

$250,000

Total assets

$320,000

Liabilities

Accounts payable

$60,000

Salaries payable

25,000

Interest payable

30,000

Notes payable

110,000

Unearned revenue

20,000

Total liabilities

$245,000

Owner's equity

Total owner's equity

$25,000

Total liabilities and equity

$320,000

a. What error was made when preparing this balance sheet?

b. What should be done to correct this error?