ACCT1046 Week 8 Assessment Question (10%) MorphWear Pty Ltd is a private company, producing high quality casual clothing. It uses eco-friendly ethically produced materials, minimising environmental impacts and follows fair trade practices. Franco has been appointed as an accountant recently. He has prepared a draft version of MorphWear Pty Ltd.'s Balance Sheet and Income Statement for the financial year ended 30 June 2022. Franco knows he has made several mistakes in classifying the elements of the Balance Sheet and Income Statement because the Income Statement shows the business has made a loss which management was not expecting. Also, the Balance Sheet doesn't balance! Franco's draft financial statements are ,shown below. MorphWear Pty Ltd Income Statement for the year ended 30 June 2022 Accounts Receivable Less: Cost of Sales $ 35,000 689,000 724,000 Gross profit Expenses Internet Expenses Electricity Expenses Prepaid Rent Furniture & Fittings Accounts Payable 49,000 112,000 12,000 65,000 30,000 Marketing expense 56,000 Accrued Wages & Salaries 28,000 Capital Contributions 300,000 Earnings before interest and tax 672,000 Accrued Interest Costs 3,800 Profit before tax 675,800 Office expenses 39,000 Profit for the period from continuing operations 636,800