We-Sell Realty, organized August 1, 2019, is owned and operated by Omar Farah. Howmany errors can you find in the following statements for We-Sell Realty, prepared afterits first month of operations?We-Sell RealtyIncome StatementAugust 31,2019Sales commissions$140,000Expenses:office salaries expense$87,000Rent expenseAutomobile expense18,0007,500Miscellaneous expense2,200Supplies expenseTotal expenses1,150115,850$ 25,000Net incomeOmar FarahStatement of Owner's EquityAugust 31,2018Omar Farah, capital, August 1, 2019.Withdrawals during August0(10,000)$(10,000)Investment on August 1, 2019...15,000$5,000Net income for August.....Omar Farah, capital, August 31, 201925,00030,000Balan ce SheetFor the Month Ended August 31, 2019Assets$ 8,900CashAccounts payable22,350Total assets$31,250LiabilitiesAccounts receivable.$38,600Supplies...4,000Owner's EquityOmar Farah, capital...Total liabilities and owner's equity30,000$72,600

Financial statements: Financial statements are condensed summary of transactions communicated in the…

Answered: We-Sell Realty, organized August 1,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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