The bookkeeper of McBride Insurance Agency prepared the balance sheet of the company while the accountant was ill. The balance sheet contains errors. In particular, the bookkeeper knew that the balance sheet should balance, so she "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 except the "Total assets" amount.

Required
1. Prepare the corrected balance sheet, and date it correctly. Compute total assets, total liabilities, and owner's equity.
2. Identify the accounts listed above that should not be presented on the balance sheet and state why you excluded them from the corrected balance sheet you prepared for Requirement 1.

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MCBRIDE INSURANCE AGENCY Balance Sheet For the Month Ended October 31, 2014 Assets Liabilities $ 24,000 $ 53,000 Cash Premium revenue 2,000 Insurance expense Accounts payable 23,000 Rent expense 6,000 Note payable 40,000 8,000 Salary expense Office furniture 20,000 Owner's Equity Accounts receivable 22,000 C. McBride, capital Utilities expense 2,000 (8,000) Notes receivable 24,000 Total liabilities and owner's equity Total assets $108,000 $108,000