The bookkeeper of Greener Landscaping, Inc., prepared the company€™s balance sheet while the accountant was ill. The balance sheet contains numerous errors. In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the stockholders€™ equity amount needed to achieve this balance. The stockholders€™ equity is incorrect. All other amounts are right, but some are out of place.

Requirements
1. Prepare a corrected balance sheet.
2. Consider the original balance sheet as presented and the corrected balance sheet you prepared for Requirement 1. Did total assets as presented in your corrected balance sheet increase, decrease, or stay the same from the original balance sheet?Why?

Transcribed Image Text:

GREENER LANDSCAPING, INC. Balance Sheet Month Ended November 30, 2012 Liabilities Assets $ 4,900 Accounts receivable $ 2,200 Cash Office supplies Common stock 600 10,000 34,200 2,800 Service revenue Land 39,000 Salary expense Property tax expense Accounts payable 2,600 Office furniture 6,100 2,700 Note payable 24,200 300 Rent expense Stockholders' Equity Retained earnings 16,600 $ 73,100 $ 73,100 Total assets Total liabilities