Review the financial statements prepared by the trainee accountant. Discuss what corrections

and changes need to be made to the financial statements. Provide references to relevant paragraphs in the accounting

standards where appropriate to support your answers.

Note: You are not required to:

1. Prepare or discuss any note disclosures that are needed; and

2. Prepare revised financial statements.

You are the financial accountant at Charles Ltd. One of the trainee accountants has prepared the following statement of profit or loss and other comprehensive income and statement financial position from the trial balance, after its first year of operations: Charles Ltd Statement of profit or loss and other comprehensive income for the year ended 30 June Revenue Advertising Depreciation expense Cost of sales Annual leave expense Insurance expense Utilities expense Prepaid rent 2023 $ 221,500 (15,000) (5,650) (48,150) (10,000) (21,000) (14,800) (7,500)