Financial data for Safety Hire as of 30 June 2019 is shown below.

Required

(a) Prepare an income statement for the month of June and a balance sheet in account format for Safety Hire as at 30 June 2019.

(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.

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Accounts receivable Equipment hire income Accounts payable Michael Donato, capital Cash at bank Mortgage payable Building $ 63.000 170 000 40 000 Wages expense Advertising expense Land ? Hire equipment 45 000 130 000 85 000 Loan payable Electricity expense Telephone expense $ 75000 30 000 75 000 180 000 50 000 18000 7 500