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The following balance sheet contains errors.

Billy Brown Services Co. Balance Sheet For the Year Ended December 31, 2021
Assets			Liabilities
Current assets:			Current liabilities:
Cash	$ 6,170		Accounts receivable	$ 9,000
Accounts payable	8,500		Accum. depr-building	13,525
Supplies	1,590		Accum. depr-equipment	6,340
Prepaid insurance	345		Net income	12,500
Land	25,000
Total current assets		$41,605	Total liabilities	$ 41,365
			Owner's Equity
Property, plant, and equipment:			Wages payable	$ 500
Building	$45,500		Billy Brown, capital	74,490
Equipment	28,250		Total owner's equity	$ 74,990
Total property, plant, and equipment		73,750
			Total liabilities and
Total assets		$116,355	owner's equity	$116,355
		========		========

Required

a. List the errors in the balance sheet above.

b. Prepare a corrected balance sheet.

c. Compared with the cash basis, what are the advantages and the disadvantages of the accrual basis