Financial & Managerial Accounting. (6 marks)

1.Falcon, the bookkeeper for New York Company, has been trying to determine the correct balance sheet for the company. The company's balance sheet is shown below. Assets Equipment $25,500 Cash 9,000 Supplies 2,000 Accounts payable (8,000) Total $28,500 Liabilities Owner's capital $26,000 Accounts receivable (6,000) Owner's drawings (2,000) Notes payable 10.500 Total $28,500 Instructions Explain to Falcon in a memo why the original balance sheet is incorrect, and what should be done to correct it