File Hom Inser Desig Layo Refer Maili Revie View DYM 11 Calibri (Body) B IUabe X2 X Paste A aby-A Aa AA Clipboard Font J Tell me Nagaraj...Share Ao Millie's Ceramic Studio Balance Sheet July 31, 2017 Cash $1,400 Styles Editing Kiln 5,000 Equity $6,400 Total $6,400 Paragraph Total Styles $6,400 Millie's Ceramic Studio Income Statement For the Month Ended July 31, 2017 Primary Assumptions Made in Preparing Financial Statements Millie Abrams opened a ceramic studio in leased retail space, paying the first month's rent of $300 and a $1,000 security deposit with a check on her personal account. She took molds and paint, worth about $7,500, from her home to the studio. She also bought a new firing kiln to start the business. The new kiln had a list price of $5,000, but Millie was able to trade in her old kiln, worth $500 at the time of trade, on the new kiln. Therefore, she paid only $4,500 cash. She wrote a check on her personal account. Millie's first customers paid a total of $1,400 to attend classes for the next two months. Millie opened a checking account in the company's name with the $1,400. She has conducted classes for one month and has sold $3,000 of unfinished ceramic pieces called greenware. All greenware sales are cash. Millie incurred $1,000 of personal cost in making the greenware. At the end of the first month, Millie prepared the following balance sheet and income statement: (Ctrl) Sales Rent Supplies Net income $300 600 $4,400 900 $3,500 Millie needs to earn at least $3,000 each month for the business to be worth her time. She is pleased with the results. Using the data given, identify the assumptions that Millie has violated by selecting the answer as Yes or No. Assumption Violated (yes/no) 1. Cost principle 2. Economic entity 3. Full disclosure 4. Going concern 5. Matching principle 6. Monetary unit 7. Time period Page 1 of 1 181 words E + 80% Using the data given, prepare a corrected income statement for Millie's Ceramic Studio. Millie's Ceramic Studio Income Statement For the Month Ended July 31, 2017 Revenues: