Zest Company is a Montreal HR firm. Its condensed income statement for the year ended November 30, 2023, is shown below.

The liabilities reported on the November 30, 2023, balance sheet were:

1. Mortgage payments are made annually each December 1. The December 1, 2023, payment has not yet been made or recorded. A partial amortization schedule for the mortgage follows:

2. Consulting revenue included $85,000 received for work to be done in January and February 2024.3. Accrued salaries at November 30, 2023, totalling $11,500 have not been recorded.4. $7,000 of office supplies purchased on account were received November 28; this transaction was not recorded.5. Annual property taxes of $17,500 are due each December 1; no property taxes have been included on the income statement.

RequiredUsing the information provided, prepare a corrected income statement and liabilities section of the balance sheet.

Analysis Component:If you were paid an annual bonus based on profit, what ethical dilemma would you face regarding the above items?

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Consulting revenue.…..... Operating expenses... Profi.............. $863,500 512,800 $350,700