Financial Statements We$-$Sell Realty, organized August $1,20$Y$9,$ is owned and operated by Omar Farah. We$-$Sell Realty Income Statement August $31,20$Y$9$ 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 $$25,000$ Omar Farah Statement of Owner's Equity August $31,2018$ Omar Farah, capital, August $1,20$Y$9$ $$0$ Withdrawals during August $(10,000)$ $$(10,000)$ Investment on August $1,20$Y$915,000$ $$5,000$ Net income for August $25,000$ Omar Farah, capital, August $31,20$Y$9$ $$30,000$ Balance Sheet For the Month Ended August $31,20$Y$9$ Assets Cash $$8,900$ Accounts payable $22,350$ Total assets $$31,250$ Liabilities Accounts receivable $$38,600$ Supplies $4,000$ Owner's Equity Omar Farah, capital $30,000$ Total liabilities and owner's equity $$72,600$ Answer the following questions regarding the errors in the above statements for We$-$Sell Realty, prepared after its first month of operations. $1.$ Which of the financial statement$($s$)$ display the correct heading? Income StatementStatement of Owner's EquityBalance SheetBalance Sheet and Statement of Owner's EquityNone of the statements.Income Statement $2.$ Which of the financial statement$($s$)$ cover a period of time? Balance Sheet and Income StatementIncome StatementIncome Statement and Statement of Owner's EquityNone of the statements.Statement of Owner's EquityIncome Statement and Statement of Owner's Equity $3.$ On the income statement, where should the miscellaneous expense be listed? As the first expense.As the last expense.As an adjustment to revenue.Not listed on Income Statement.As an adjustment to revenue. $4.$ What is the correct net income? $fill in the blank $4$ This error also affects what other account balance? EX $1-25$ Financial statements

We$-$SeIl Realty, organized August $1,20$Y$9,$ 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 $31,20$Y$9$

Sales commissions

$$140,000$

Expenses:

Office salaries expense

Rent expense

Automobile expense

Miscellaneous expense

Supplies expense

Total expenses.

Net income

Omar Farah

Statement of Owner's Equity

August $31,20Y8$

Omar Farah, capital, August $1,20$ Y$9$

Withdrawals during August $.$

Investment on August $1,20$ Y$9.$

Net income for August.

Omar Farah, capital, August $31,20$ Y$9$

Balance Sheet

For the Month Ended August $31,20$ Y$9$

Cash

Assets

Accounts payable

Total assets

Liabilities

Accounts receivable

Supplies

Owner's Equity

Omar Farah, capital.

$[$$$8,900],[22,350],[$$$31,250]$

Total liabilities and owner's equity.

$$38,600$

$4,000$

Owner's Equity