The IT manager of Right Away Realty, Inc., prepared the balance sheet of the com pany while the accountant was ill. The balance sheet contains numerous errors. In particular, the IT manager knew that the balance sheet should balance, so she plugged in the retained earnings amount to achieve this balance. The retained earnings amount, however, is not correct. All other amounts are accurate, but some are out of place.

Requirement 1. Prepare a new, corrected balance sheet for Right Away Realty, Inc. Graham’s Yard Care, Inc., began operations and completed the following trans¬ actions during June:

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Right Away Realty, Inc. Balance Sheet Month Ended September 30, 2010 ASSETS LIABILITIES Cash $14,000 Accounts Payable $ 300 Rent Expense 1,600 Utilities Expense 700 Supplies Expense 100 Accounts Receivable 2,200 Salaries Payable 1,950 Notes Payable 7,000 Equipment 8,300 STOCKHOLDERS' EQUITY Common Stock 12,000 Supplies 600 Retained Earnings 3,150 Total Stockholders' Equity 15,750 Total Liabilities & Total Assets $25,950 Stockholders' Equity $25,950