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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

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 banks loan officers in support of her loan application.
The Education Supply Center
Balance Sheet
December 31,20X1
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 stores 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.

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