Big Screen Scripts is a service-type eaterprise in the entertainment field, and its manager, William pippin, has only a lirrited knowledge of accounting. Pippin prepared the following balance sbeet, which, although arranged satisfactorily, contains certain errors with respect to such concepts as the baxiness eatity and asset valuation. Pippin owns all of the corporation's oatstanding stock. 1. The amount of cash, $5,150, inclades $3,400 in the compary i bank accounc, $540 oa hand in the coupary's safe, and \$1,210 in Pippin's personal savings actout. 2. Ose of the notes receivable in the amount of $500 is an 10U that Pippis recehed in a polker game several yean ago. The IOU is siped by "B...." "who Pippin met at the game bat has not beard from sisce. 3. Office furriture inchades $2,900 for a Persian rug for the eftice purckased on November 20 . The total cort of the ruz was $9,400. The basiness paid $2,900 in cash and issued a sote payable to debt is not incladed in the liabilities giten here. 4. Also incladed in the amount for office furniture is a computer that cont $2,523 but in not on kand because Pippin doanted it to a local charity. 5. The -Ober Assats" of $22,400 represant the total amount of mcouse taxes Pippla bas paid the federal goverment oter a period of yezr. Pippis believes the income tax law to be taxes paid as soos as ke pastes the bur exam. 6. The asse: Land was acquired at a cont of $39,000 but tras increased to a valeasios of $70,000 whes ore of Pippin's triends offered to pay that moch for it if Pippin woald move the balding off the tot