Question 3 (5 marks) Garden Guru Garry is a business that commenced operations in early 2020. The owner, Garry, is a friend of your family. Garry was asked by his bank to provide financial statements for his business for the first six months of operations, as part of a loan application. As Garry has no experience in Accounting, he watched some "how to prepare financial statements" videos he discovered online and then prepared the financial statements on the next page: Page 2 of 4 BBUS1DAS - Assignment 1 (1,000 words), T3, 2020 Garden Guru Garry Statement of Profit or Loss As at 30 June 2020 Income $ Accounts receivable 4,350 Cash at bank 11,625 Income received in advance 3,750 Service revenue 54,000 Total income 73,725 Expenses Depreciation expense 3,750 Prepaid rent 3,750 Rent expense 15,000 Supplies expense 7,425 Wages expense 15,750 Utilities expense 3,825 Total expenses 49,500Utilities expense 3,825 Total expenses 49,500 Net profit 24,225 Garden Guru Garry Balance Sheet For the period ending 30 June 2020 Current Assets Motor vehicles 37,500 Supplies 9,300 Total Current Assets 46,800 Non-Current Assets Office equipment 10,575 Total Non-Current Assets 10,575 Total assets 57,375 Current Liabilities Bank loan (due in 2023) 15,000 Accounts payable 7,200 Total Current Liabilities 22,200 Total liabilities 22,200 Net Assets 35,175 Owner's Equity Capital 51,150 Total equity 51,150 After learning that you are currently studying Accounting at La Trobe University, Garry has asked you for advice in the form of a brief written report. Your report should: ) Describe the purpose of each of the financial statements above. Include in your answer how they are linked (100 words). (1 mark) b) List any errors Garry has made in these financial statements and then briefly explain to Garry the correct treatment (275 words). (4 marks)