Critical Thinking Problem 4.1 (Static) Financial Statements French Taylor is a new staff accountant for Fashion House Beauty Supply. He has asked you to review the financial statements prepared for April to find and correct any errors. Review the income statement and balance sheet that follow and identify the errors Taylor made (he did not prepare a statement of owner's equity). FASHION HOUSE BEAUTY SUPPLY Income Statement April 30, 20x1 Revenue Fees income $42,800 Expenses Salaries expense $10,800 Rent expense 3,200 Repair expense 910 utilities expense 1,820 Drawing 5,200. Total expenses 21,030 Net income $26,470 FASHION HOUSE BEAUTY SUPPLY Balance Sheet Month Ended April 30, 20x1 $ 25,000 Accounts receivable. 42,000 17,000 Liabilities Owner's Equity French Taylor, Capital, April 1, 20x11 Total Liabilities and Owner's Equity $13,870 70,900 $14,770 Assets Land Building Cash Accounts payable Tatal Assets 6,100 $80,100