Your friend, Ron Weasley, recently began work as the lead accountant for Ollivander's Wand Shop. Ron prepared the attached balance sheet for December 31st. Write a brief memo to Ron explaining the errors in Ollivander's balance sheet and provide the correct presentation for the balance sheet.

Ollivander's Wand Shop Balance Sheet 12/31/20Y1 Assets \begin{tabular}{lr} Land & $100,000 \\ Accounts Payable & $10,000 \\ Accounts Receivable & $12,500 \\ Cash & $10,000 \\ Common Stock & $115,000 \\ Total Assets & $247,500 \end{tabular} \begin{tabular}{lr} Liabilities & \\ Equipment & $125,000 \\ Retained Earnings & $120,000 \\ Wages Payable & $2,500 \\ \multicolumn{1}{c}{ Total Liabilities } & $247,500 \end{tabular}