Item$1$

Item $1$

Eyelash Extension Company$$s liabilities as reported on the June $30,2023,$ balance sheet are shown below, along with its statement of changes in equity.

Accounts payable $ $180,100$

Notes payable, due $2025487,000$

Total liabilities $ $667,100$

Eyelash Extension Company

Statement of Changes in Equity

For Year Ended June $30,2023$

Jan Suzette, capital, June $30,2022$ $ $488,000$

Add: Profit $197,100$

Total $ $685,100$

Less: Withdrawals $285,700$

Jan Suzette, capital, June $30,2023$ $ $399,400$

Jan is selling the business. A potential buyer has hired an accountant to review the accounting records and the following was discovered:

Eyelash Extension Company began selling a new product line this past year that offered a warranty to customers. It is expected that $$48,700$ of warranty work will result next year based on first$-$year sales. No entry was prepared on June $30$ to show this.

Annual property taxes of $$21,900$ are due July $31,2023$; the income statement shows only one month of property expense resulting from an entry correctly recorded on July $31,2022.$

Interest on the notes payable is paid quarterly. No entry has been recorded since the last quarterly payment of $$10,200$ on May $1,2023.$

$$16,900$ of new office furniture was purchased on account and received on June $28.$ This transaction has not been recorded.

Unearned revenue of $$21,700$ has been included on the income statement.

Required:

Using the information provided, prepare a corrected statement of changes in equity and liabilities section of the balance sheet. Ignore PST$/$GST$.($Round your intermediate calculations and final answers to the nearest whole dollar.$)$