The manager of News Maker, Inc., prepared the company€™s balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the manager knew that the balance sheet should balance, so he plugged in the stockholders equity amount needed to achieve this balance. The stockholders equity amount is not correct. All other amounts are accurate.

Requirements
1. Prepare the correct balance sheet and date it properly. Compute total assets, total liabilities, and stockholders equity.
2. Is News Maker in better (or worse) financial position than the erroneous balance sheet reports? Give the reason for your answer.
3. Identify the accounts that should not be reported on the balance sheet. State why you excluded them from the correct balance sheet you prepared for Requirement 1. On which financial statement should these accountsappear?

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News Maker, Inc. Balance Sheet For the Month Ended November 30, 2010 Assets Liabilities $ 7,500 39,000 4,000 1,700 400 82,000 4,500 S 14,500 1,600 900 3,400 55,000 75,400 Notes receivable Interest expense Office supplie ul Accounts payable Utilities expense Advertising ex Note payable Total Stockholders' Equity Stockholders' equity 63.700 $139,100 Total assets $139,100 Total liabilities