Joe's Machine Repair Shop Balance Sheet July 31, 2017 S 400 5,000 $5,400 Cash $5,400 $5,400 Equity Total Total Joe's Machine Repair Shop Income Statement For the Month Ended July 31, 2017 $2,900 Sales Rent Tools 300 4,200 4,500 $(1,600) Net loss Joe believes that he should show a greater profit next month because he won't have large expenses for items such as tools. Required Identify the assumptions that Joe has violated and explain how each event should have been handled. Prepare a corrected balance sheet and income statement. Joe's Machine Repair Shop Balance Sheet July 31, 2017 S 400 5,000 $5,400 Cash $5,400 $5,400 Equity Total Total Joe's Machine Repair Shop Income Statement For the Month Ended July 31, 2017 $2,900 Sales Rent Tools 300 4,200 4,500 $(1,600) Net loss Joe believes that he should show a greater profit next month because he won't have large expenses for items such as tools. Required Identify the assumptions that Joe has violated and explain how each event should have been handled. Prepare a corrected balance sheet and income statement