Question # 1 {Marks 6}

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.