Financial data for Safety Hire as of 30 June 2024 are:

Required

(a) Prepare a statement of financial performance for the month of June and a statement of financial position in account format for Safety Hire as at 30 June 2024.

(b) Discuss if, and how, the financial reports that you have prepared would change if you were aware that the wages expense included $20 000 of drawings by the owner of Safety Hire.

Transcribed Image Text:

Accounts receivable Equipment hire income Accounts payable Michael Donato, capital Cash at bank Mortgage payable Building $ 63.000 Wages expense 170 000 Advertising expense 40 000 Land ? Hire equipment 45 000 Loan payable 130 000 Electricity expense 85 000 Telephone expense $ 75.000 30 000 75 000 180.000 50 000 18 000 7 500