QUESTION 2

1. A new business graduate with one subject of accounting prepared the financial statements below for Jack's Tutoring School at the end of the first year of operations.

   

   Additional analysis revealed the following:

   1. Tutoring fees of $15,500 (owed by students) were unrecorded at 30 June.
   2. Additional equipment of $5,500 purchased with a bank loan at the end of the month had not been recorded.
   3. Office expenses included supplies on hand at 30 June costing $4,600.
   4. Wages of $2,500 were payable at 30 June.

   Required:

   1. Prepare a corrected statement of financial performance (income statement) for the year ended 30 June 2021.
   2. Prepare a corrected statement of financial position (balance sheet) in narrative form as at 30 June 2021.
   3. Prepare a statement of changes in equity for the year ended 30 June 2021

JACK'S TUTORING SCHOOL Statement of financial performance for the year ended 30 June 2021 $230 000 Income Tutoring fees Expenses Office rent expense Wages expense Office expenses Electricity expense J. Horner, drawings Depreciation expense - vehicle - equipment $36 000 86 000 32 400 13 500 22 400 6600 2 100 199 000 $ 31 000 Profit ASSETS Cash at bank Equipment Statement of financial position as at 30 June 2021 LIABILITIES $ 25 200 Accounts payable 34 600 EQUITY $ 26 000 Vehicle 42 000 H. Horner, capital 75 800 $101 800 $ 101 800