EX 1-25. Financial statements OBJ,5 We-Sell Realty, organized August 1, 2014, is owned and operated by Omar Farah. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of operations? We-Sell Realty Income Statement August 31, 2014 Sales commissions $140,000 Expenses: Office salaries expense. $87,000 Rent expense...... 18,000 Automobile expense. 7,500 Miscellaneous expense. 2,200 Supplies expense... 1,150 Total expenses 115,850 Net income... $ 25,000 Omar Farah Statement of Owner's Equity August 31, 2013 Omar Farah, capital, August 1, 2014. Less withdrawals during August. Investment on August 1, 2014..... $ 0 10,000 $(10,000) 15,000 $ 5,000 25,000 $ 30,000 Net income for August............ Omar Farah, capital, August 31, 2014 Assets Cash Accounts payable Balance Sheet For the Month Ended August 31, 2014 Liabilities $ 8,900 Accounts receivable 22,350 Supplies... Owner's Equity Omar Farah, capital... $31,250 Total liabilities and owner's equity.... $38,600 4,000 Total assets 30,000 $72,600 Prepare the income statement. EX 1-25. Financial statements OBJ,5 We-Sell Realty, organized August 1, 2014, is owned and operated by Omar Farah. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of operations? We-Sell Realty Income Statement August 31, 2014 Sales commissions $140,000 Expenses: Office salaries expense. $87,000 Rent expense...... 18,000 Automobile expense. 7,500 Miscellaneous expense. 2,200 Supplies expense... 1,150 Total expenses 115,850 Net income... $ 25,000 Omar Farah Statement of Owner's Equity August 31, 2013 Omar Farah, capital, August 1, 2014. Less withdrawals during August. Investment on August 1, 2014..... $ 0 10,000 $(10,000) 15,000 $ 5,000 25,000 $ 30,000 Net income for August............ Omar Farah, capital, August 31, 2014 Assets Cash Accounts payable Balance Sheet For the Month Ended August 31, 2014 Liabilities $ 8,900 Accounts receivable 22,350 Supplies... Owner's Equity Omar Farah, capital... $31,250 Total liabilities and owner's equity.... $38,600 4,000 Total assets 30,000 $72,600 Prepare the income statement