Efendi Company hired an accounting intern, Pat Morgan, to prepare its income statement, statement ofretained earnings, and balance sheet. Pat indicated a reluctance to undertake this task due to a lack of adequatetraining. But, Pat agreed provided someone would examine the work in detail and provide usefulsuggestions for improvement. Pats work follows:PAT MORGANSIncome StatementDecember 31, 20X5Net incomeServices to customers $125,000ExpensesDividends $13,500Rent 11,000 24,500Revenues $100,500PAT MORGANSStatement of Retained EarningsFor the Year Ending December 31, 20X1Beginning retained earnings $ 45,000Plus: Net income 100,500$145,500Less: Capital stock 200,000Ending retained earnings $ (54,500)Team-based identification of errors and corrections I-01.0722PAT MORGANSEquation SheetDecember 31, 20X1AssetsCash $ 92,700Accounts receivable 37,400Equipment 239,000Total assets $369,100LiabilitiesAccounts payable $ 7,500Wages expense 64,000Total expenses $ 71,500Stockholders equityNotes payable $80,100Retained earnings (54,500)Total stockholders equity 25,600Total liabilities and equity $ 97,100(a) Find specific errors in Pats work. Prepare written review notes for Pat sufficient to allow Pat tounderstand the errors and make necessary corrections. To get you started, you may assume Pat didmanage to get the listing of total assets correct.