The bookkeeper of Outdoor Life 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?

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OUTDOOR LIFE LANDSCAPING, INC. Balance Sheet Month Ended July 31, 2012 Liabilities Assets $ 5,000 $ 2,300 Accounts receivable Cash Office supplies Common stock 800 8,000 Land Service revenue 28,400 39,200 Salary expense 3,500 Property tax expense Accounts payable 2,000 Office furniture 5,200 2,800 Note payable 26,400 Stockholders' Equity Rent expense 700 Retained carnings 15,700 $ 70,000 $ 70,000 Total assets Total liabilities