Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies. Hawkins recently approached the local bank for a loan to finance a planned expansion of her store. Hawkins prepared the balance sheet shown below and submitted it to one of the bank$$s loan officers in support of her loan application.

The Education Supply Center

Balance Sheet

December $31,20$X$1$

Assets

Cash $ $14,000$

Accounts Receivable $16,600$

Inventory $40,600$

Equipment $($cost$)33,000$

Personal Residence $204,000$

Supplies $2,120$

Family Auto $36,000$

Total Assets $ $346,320$

Liabilities and Owner's Equity

Accounts Payable $ $17,050$

Note Payable on Family Car $12,600$

Mortgage on House $108,000$

Sadie Hawkins, Capital $208,670$

Total Liabilities and Owner's Equity $ $346,320$

The following additional information was made available by Hawkins:

The inventory has an original cost of $$32,500.$ It is listed on the balance sheet at the estimated selling price.

The cash listed on the balance sheet includes $$3,500$ in Sadie Hawkins' personal account. The remainder of the cash is in the store$$s account.

The store recently purchased a delivery truck for $$37,000,$ financed through a bank loan. The bank has legal title to the truck. To date, the store has paid $$10,600$ on the loan. Of the remaining $$26,400$ liability, $$10,200$ is current and the remainder long$-$term. Hawkins did not include the truck or the liability on the balance sheet because neither she nor the business owns it$.$

Depreciation allowable to date is $$6,600$ on the equipment and $$4,600$ on the truck.

Required:

$2.$ Prepare a corrected balance sheet in accordance with generally accepted accounting principles.