Financial Statements

We-Sell Realty, organized as a corporation on August 1, 2018, is owned and operated by Omar Farah, the sole stockholder.

We-Sell Realty
Income Statement
August 31, 2018
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
Retained Earnings Statement
August 31, 2017
Retained earnings, August 1, 2018	$0
Dividends	(10,000)
	$(10,000)
Issued additional common stock August 1, 2018	15,000
	$5,000
Net income	25,000
Retained earnings, August 31, 2018	$30,000

Balance Sheet
For the Month Ended August 31, 2018
Assets
Cash	$8,900
Accounts payable	22,350
Total assets	$31,250
Liabilities
Accounts receivable	$38,600
Supplies	4,000
Stockholders Equity
Retained earnings	30,000
Total liabilities and stockholders 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? =>None of the statements.

2. Which of the financial statement(s) cover a period of time? =>Income Statement and Retained Earnings Statement

3. What is the equation on the balance sheet? =>Asset = Liabilities + Stockholder's equity

4. What is the correct net income?=> $24,150

This error also affects what other account balance?=>Retained Earnings, August 1, 2018

5. WHAT IS THE CORRECT TOTAL FOR THE TOTAL ASSETS? I NEED THIS TO BE ANSWERED PLEASE HELP, I ALREADY DID THE OTHER QUESTIONS, I JUST NEED THIS PLEASE !!!!! :)

What is the correct total for the liabilities? => $22,350