On August 31, 2023, World Travel Consulting showed the following adjusted account balances in alphabetical order:

Required1. Prepare the liability section of the balance sheet at August 31, 2023 based on the above trial balance.2. Prepare a corrected balance sheet at August 31, 2023. Charles World, the owner, is planning on expanding the business and has applied for a $2,000,000 bank loan.John Tanner, a CPA and Certified Fraud Examiner, was contracted by the bank to review the financial statements of World Travel Consulting. Tanner discovered that included in sales were the following:

He also noted the following excerpt from the amortization schedule of the long-term mortgage payable:

Analysis Component:Using your answers from Parts 1 and 2, discuss the implications of John’s findings on the financial statements.

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Accounts payable......... Accounts receivable.... Accumulated depreciation, building......... Accumulated depreciation, equipment... Building.. Cash....... Charles World, capital.. Equipment. GST receivable....... Interest payable... Land.............. Long-term mortgage payable. Notes payable, due December 1, 2024... Notes payable, due March 1, 2024.... Office supplies......... Office supplies expense..... Other operating expenses (including depreciation)... Prepaid expenses........ Salaries expense.... Salaries payable.... Sales....... Page 813 $ 2,800 22,500 37,000 13,000 271,000 15,000 ? 38,000 840 1,400 145,000 111,860 . 26,000 17,000 1,800 14,000 101,000 8,500 126,000 8,200 631,500