Your friend, Ron Weasley, recently began work as the lead accountant for Ollivander's Wand Shop. Ron prepared the attached balance sheet for December $31$st$.$ 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

$12/31/20$XX

Assets

Short$-$term debt $$15,000$

Accounts Payable $$20,000$

Retained Earnings $$180,000$

Inventory $$25,000$

Equipment $$240,000$

Total Assets $$480,000$

Liabilities

Land $$125,000$

Accumulated Depreciation $-$ Equipment $$40,000$

Accounts Receivable $$30,000$

Prepaid Insurance $$10,000$

Common Stock $$78,500$

Accrued liabilities $$24,000$

Total Liabilities $$307,500$

Equity

Notes Payable $$120,000$

Cash $$50,000$

Wages Payable $$2,500$

Total Equity $$172,500$

Total Liabilities $+$ Equity $$480,000$