Statement of Changes in Equity
For the year ending 30 June 2020
Revenue
Sales Revenue
Revenue received in advance
Total Revenue
$
540,500
20,500
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. (10
marks)