Reference no: EM133016916

Question - Daniel Baker is a sole trader who provides manufacturers and sells items of furniture to individuals and businesses, operating under the name Baker's Fine Furniture.

The following statements have been provided to you as part of the preparation of the financial statements for 30 June 2020.

Statement of Changes in Equity For the year ending 30 June 2020

Revenue $

Sales Revenue 540,500

Revenue received in advance 20,500

Total Revenue 561,000

Expenses

Cost of Goods sold (324,300)

Office supplies expense (7,460)

Accumulated depreciation (34,680)

Rent &utilities expense (20,000)

Wages and Salaries (61,000)

Prepaid Advertising (10,400)

Dividends expense (5,000)

Total Expenses (462,840)

Required - Identify five (5) errors from the statement above and provide recommendations as to how the errors can be corrected. Calculations are not necessary.

Ensure your five (5) items are not referring to or linked to an error previously noted, you should identify five (5) DIFFERENT items and errors should not relate to sub-totals or total calculations.