The bookkeeper of Oliver Services Co., a proprietorship, prepared the balance sheet of the company while the accountant was ill. The balance sheet is not correct. 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 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. Consider the original balance sheet as presented and the corrected balance sheet you prepared for Requirement 1. Did the total assets presented in your corrected balance sheet increase, decrease, or stay the same compared to the original balance sheet? Why?

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OLIVER SERVICES CO. Balance Sheet For the Month Ended July 31, 2016 Assets Cash Office supplies Land Advertising expense Office furniture Accounts receivable Rent expense Total assets Liabilities $70,000 Service revenue 5,000 Note payable 130,000 Accounts payable $220,000 55,000 45,000 10,000 50,000 75,000 Owner's Equity 22,000 J. Enderby, capital 42,000 Total liabilities and owner's equity $362,000 S362,000