The trial balance of 4AC, Inc., at October 31, 2016, does not balance.

Requirements 1. Prepare a trial balance for the ledger accounts of 4AC, Inc., as of October 31, 2016.

2. Determine the out-of-balance amount. The error lies in the Accounts Receivable account. Add the out-of-balance amount to, or subtract it from, Accounts Receivable to determine the correct balance of Accounts Receivable. After correcting Accounts Receivable, advise the top management of 4AC, Inc., on the company's

a. Total assets.

b. Total liabilities.

c. Net income or net loss for October.

Accounts Cash Accounts receivable Land Accounts payable Note payable Common stock 3.900 7,100 Retained earnings 30,100 Service revenue 6,200 Salary expense 5,900 Advertising expense 24.100 1,700 9.400 2,900 1,400