Question 2b) - 13 marks Alan now has a little more time and would like to learn how to prepare a fully classified Balance Sheet. He has made an attempt, but as he doesn't really understand how to classify a Balance Sheet, he is confused and thinks he may have made a number of errors. Alan has provided you with a copy of the fully classified Balance Sheet that he has attempted below and has asked you to review it. DARLING BUDS BALANCE SHEET AS AT 30 JUNE 2021 ASSETS Current Accounts Receivable Inventory Prepaid Rent $36,300 44,500 1,800 82,600 $ 16,000 Non-Current Cash at Bank Equipment less Accum. Depreciation - Equip Delivery Van less Accum. Depreciation - D.V. TOTAL ASSETS 10,600 16,000 (5,400) 24,000 (4,800) 19,200 45,800 $128,400 LIABILITIES Current Accounts Payable Allowance for Doubtful Debts Loan Payable (due 2026) TOTAL LIABILITIES NET ASSETS 22,250 3,100 32,000 57,350 $71.050 EQUITY Capital, A. Key $71.050 i. Explain to Alan in your own words what element the account 'Accumulated Depreciation - Equipment' is. Please note you are not required to provide any element definitions. (2 marks) ii. Explain to Alan in your own words what the figure of $10,600 (highlighted in green) represents. (2 marks) iii. Three items in the fully classified Balance Sheet that Alan has provided you have been incorrectly classified. For each of these items, answer the following questions in the boxes provided below. Your answers must be in your own words: (1) (2) (3) identify the item in the Balance Sheet above that has been incorrectly classified, state where it should be correctly classified in a fully classified Balance, and explain why it should be re-classified in the way that you have identified in (2) above. Item 1 (3 marks) (1) (2) (3) Item 2 (3 marks) (1) (2) (3) Item 3 (3 marks) (1) (2) (3)