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, 2013 Liabilities Assets $ 70,000 $220,000 Cash Service revenue Office supplies 5,000 Note payable 55,000 130,000 Land Accounts payable 45,000 Advertising expense 10,000 Office furniture 50,000 Owner's Equity 75,000 Accounts receivable Rent expense 22,000 J. Enderby, capital 42,000 Total liabilities and owner's equity $362,000 Total assets $362,000