Accounting Question

[cwilliams]

Edith Eggelton, the owner of a small business, has just received her first set of financial statements and is shocked to see that instead of making a profit, she is actually suffering a loss. She has been in business for six months and each month she prepared financial statements directly from the accounts without making any adjustments. Prepare a report indicating how the business may be showing a profit until the adjustments are taken into consideration.