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Bookkeeper of ABC & Company. prepared the company's balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper

Bookkeeper of ABC & Company. prepared the company's balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the owner's equity amount needed to achieve this balance. The owner's equity amount, however, is not correct. All other amounts are accurate, but some are out of place.

ABC & Company.

Balance Sheet

Month Ended July 31, 2021

Assets

Liabilities

Cash

12,000

Account Receivable

3,000

Office Supplies

1,000

Services-revenue

68,000

Land

44,000

Property tax expense

800

Salary Expense

2,500

Account Payable

9,000

Office Furniture

8,000

Note payable

16,000

Owners Equity

Rent Payable

4,000

Owners Equity

6,700

Total Assets

87,500

87,500

Required:

1. Prepare the correct balance sheet, and date it correctly. Compute total assets, total liabilities, and

owner's equity.

2. Identify the accounts that should not be presented on the balance sheet.

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