11 Eyelash Extension Company's liabilities as reported on the June 30, 2023, balance sheet are shown below, along with its statement of changes in equity. Accounts payable Notes payable, due 2025 Total liabilities Eyelash Extension Company Statement of Changes in Equity For Year Ended June 30, 2023 Jan Suzette, capital, June 30, 2022 Add: Profit $180, 200 488,000 $668, 200 Total Less: Withdrawals Jan Suzette, capital, June 30, 2023 $489,000 197,200 $686,200 285,800 $400,400 Jan is selling the business. A potential buyer has hired an accountant to review the accounting records and the following was discovered: a. Eyelash Extension Company began selling a new product line this past year that offered a warranty to customers. It is expected that $48,800 of warranty work will result next year based on first-year sales. No entry was prepared on June 30 to show this. b. Annual property taxes of $22,200 are due July 31, 2023; the income statement shows only one month of property expense resulting from an entry correctly recorded on July 31, 2022. c. Interest on the notes payable is paid quarterly. No entry has been recorded since the last quarterly payment of $10,500 on May 1, 2023.