Andy operates a cleaning business, AA Cleaning Services, but has recently decided that he would like to retire and travel around Australia in a Kombi van. He has been in negotiations with Joe who has agreed to purchase Andy's business for six (6) times the business's most recent net income figure. Andy has presented Joe with the following condensed income statement for the year ended 30 September 2019: Revenues $120,000 Expenses 36,000 Net income $ 84,000 Based on the above calculation, Andy is asking $504,000 for the business. Joe has asked Andy if he can look over the business accounts, and Andy has agreed. It appears to Joe that Andy's recordkeeping might not be totally accurate, and he is concerned about the following account balances: Prepaid Rent $13,200; Equipment $3,600 (net, after accumulated depreciation) and Unearned Revenue $1,800. Upon further discussion with Andy, Joe has ascertained that Andy began the business on 02 October 2016 at which time he rented a small office/storeroom and purchased equipment for $6,000 cash. At the time of purchasing the equipment Andy had estimated that it would have a useful life of 5 years after which time it would need to be scrapped. Andy has also explained to Joe that the rent on his office/storeroom is $1,100 per month which he pays annually in advance (on 02 October each year), and that the Unearned Revenue is an amount that was paid by a client on 30 July 2019 for cleaning services to be performed over the following six months. Joe has asked your advice on whether the Prepaid Rent, Equipment and Unearned Revenue account balances are correct, and if they are not correct, whether this would impact AA Cleaning Services' 2019 net income figure. Joe has told you that he is prepared to pay a fair price for Andy's business, but also wants to make sure he is not being ripped off. REQUIRED (a) Determine the correct balances (as at 30 September 2019) for each of the three accounts that Joe is concerned about: Prepaid Rent, Equipment and Unearned Revenue. (Show all supporting calculations.) (b) a corrected condensed income statement for AA Cleaning Services for the year ended 30 September 2019 (Show all supporting calculations.)