The bookkeeper of Martz Auction Co. prepared the balance sheet of the company 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

               MARTZ AUCTION Co. BALANCE SHEET MONTH ENDED JULY, 31, 19X3

        ASSETS                                                                                                     LIABILITIES

Cash                                   3,000                                              Accounting receivable      3,000

Office supplies                 1,000                                              Service Revenue                 9,000

Land                                 44,000                                            Property tax expense            800

Advertising Expense       2,500                                                     Account payable                 9,000

Office furniture              10,000                                                                 Owner’s Equity

Note Payable                   16,000                                                  Owner’s Equity                     8,700

Rent expense                    4,000

  Total Assets                  80,500                                                     Total Liabilities                    80,500

Required

1 Prepared the correct balance sheet and dates it correctly. Compute total assets, total liabilities and owner’s equity

2 Identify the accounts listed above that should be presented on the balance sheet and state why you excluded them from the correct balance sheet you prepared for requirement 1