Question 4 Big Screen Scripts is a service-type enterprise in the entertainment field, and its manager, William Pippin, has only a limited knowledge of acoounting. Pippin prepared the following balance sheet, which, although arranged satisfactorily, contains certain enors with respect to sach concepts as the business entity and asset valuation. Pippin owns all of the corporation's cetstanding stock. 1. The amount of cash, $5,150, includes $3,400 in the company's bank account, $540 on hand in the company's safe, and \$1,210 in Pippin's personal savings acoount. 2. One of the notes receivable in the amount of $500 is an 1OU that Pippin roceived in a poker game several years ago. The IOU is signed by "B.K.," who Pippin met at the pame but has not heard from since. 3. Office furniture includes $2,900 for a Persian rug for the office purchased on Noventer 20 . The total cost of the rug was $9,400. The business paid $2,900 in cash and ivsued a note payable to Zoltan Carpet for the balance due ($6,500). As no payment on the note is due antil January, this debt is not included in the liabilities given here. 4. Also included in the amount for office furniture is a computer that cost $2.525 but is not on hand because Pippin doeated it to a local charity. 5. The "Other Assets" of $22,400 represent the total amount of income taxes Pippin has paid the federal governanent over a period of years. Pippia believes the incone tax law to be unconstitutional, and a friend who artends law school has promised to help Pippin recover the taxes paid as soon as be passes the bar exam. 6. The asset "Land" was acquired an a cost of $39,000 but was increased to a valuation of $770,000 when one of Pippin's friends offered to pay that mach for it if Pippin would move the bailling off the lot. 7. The accounts payable include business debts of $32,700 and the $3,105 balance owed on Pippin's personal MasterCard. Required: Prepare a corrected balance sheet at November 30 , current year