1. At the end of 2020, the company's general ledger indicated the following balances: 2. 3. 4. 5. 6. 7. 8. operates a computer training center. The following data relate to the preparation of a master budget for January 2021. (b) Cash Debits Accounts receivable Equipment (net) Total $ 65,000 35,500 110,000 $ 210,500 Credits Accounts Payable Note payable Common stock Retained earnings $ 40,000 60,000 21,000 89,500 $ 210,500 Tuition revenue in December 2020 was $71,000, and tuition revenue budgeted for January 2021 is $100,000. 50 percent of tuition revenue is collected in the month earned, and 50 percent is collected in the subsequent month. The receivable balance at the end of 2020 reflects tuition earned in December 2020. Monthly expenses (excluding interest expense) are budgeted as follows: salaries, $53,000; rent, $4,400; depreciation on equipment, $7,000; utilities, $1,800; other, $760. Expenses are paid in the month incurred. Purchases of equipment are paid in the month after purchase. The $40,000 payable at the end of 2020 represents money owed for the purchase of computer equipment in December 2020. The company intends to purchase $48,000 of computer equipment in January 2021. The anticipated $7,000 per month of depreciation (see number 4) reflects the addition of $1,800 of monthly depreciation related to this purchase. The note is at 16 percent per annum and requires monthly interest payments of $800. The payments are made on the 20th of each month. The principal must be paid in February 2022. The tax rate is 20 percent. Complete the budgeted income statement. (Round answers to 0 decimal places, e.g. 125.)

1. At the end of 2020 , the companys seneralleder indicated the following balances: 2. Tuition rewenue in December 2020 was $71,000, and tuition revenue budgeted for January 2021 is $100,000. 3. 50 percent of tuition revenue is collected in the month earmed, and so percent is collected in the subsecuent month. The receivable balance at the end of 2020 reflects tuition earned in December 2020 . 4. Monthly expenses (excluding interest oxpeme) are budected as follows salaries, $53,000; rent, $4,400; depreciation on equipment, $7,000, utilities, $1,800, other, $760. 5. Fepenses are paid in the month incurred. Purchases of equipment sre paid in the month afler purchase. The \$40,000 payable at the end of 2020 represents money omed for the purchase of computer equoment in December 2020. 6. The company intends to purchase $48,000 of computer equipment in January 2021. The anticipated $7,000 per month of depreciation (see number 4) reflects the addition of $1,800 of monthly depreciation related to this purchase. 7. The note is at 16 percent per annum and requires monthlyinterest paymenis of soco The paryments are made on the 20 th of each month. The prindipal must be paid in February 2022. 8. The taxrate is 20 percent. (b) Complete the budgeted incorre statement, (Round answers to 0 decinal ploces, es 125) Fichetti operates a computer trainire centes, The followinc data relate to the preparation of a masier budet for jamary 2021. 1. At the end of 2020 , the company's gencral ledoer indicated the following balances: 2. Tuition rewenue in December 2020 wan $71000 and fuition fevenue budeted for January 2001 b $100,000 I. Sopercent of tuition revence is collected in the monthearned and 50 percent iscollected in the whbaiwent month. The receivable balanos at the end of 2020 refects tuition earned in Decrmber 2070 . 4. Monthly aperses fectudine interest expemel are budocted as follows salaries, $53,000, rent, $4,400, depreciation on equipment, $7,000, untities $1,800, other, $760 5. Superses are pald in the month incurred. Purchases of rquipment are pid in the month after purchase. The 540,000 payatle at the end of 2020 represents monev owed foe the purchase of computerequipment in December 20020. 6: The company intendsto purchave $48,000 of computer equipment is January 2021 . The anticipated $7000 per month of depreciation (see number 4 ) reflects the addition of $1.800 of monthly depreciation related to this purchase. 7. The note is at 16 percent per annam and requires monthy interest payments of $800. The parments ane made on the 20 th of each month The prinopal must be paid in February 2022. 8. The taxiste is 20 percent. Complete the budpeted incomestatement. (Round ansuen to 0 dedinal ploces es 125)