| 1. Prepare a Pro-forma income statement, and balance sheet and cash budget statement , for your company, on a monthly bases for the 2nd quarter, and a total column for the quarter, based on the following assumptions: |
| Sales will increase by 50% over Q1 and are equally spread out over the 3 months. All sales are on credit. The collection pattern is 20% in the month of sale, 50% in the month following sale and the balance in the 2nd month following sale. |
| All of the A/R outstanding at March 31st will be received in the 2nd quarter as follows; 80% in April and the balance in May. |
| The employees will be the four employees who worked on the March 31st payroll (in Assignment 2). Their wages and source deductions remain the same. Source deductions must be paid on the 15th of the following month. |
| Rent will be the same; telephone expense which will be $800 per month (+HST). |
| The business will buy computer equipment on April 1 for $1,000 plus HST. |
| HST is paid on the 15th of the month following the end of the quarter. |
| Accrued interest will be paid on April 1st and interest will have to be accrued monthly. It will be paid on July 2nd. Bank charges paid to the bank are $200 per month. |
| Office expenses will be $100 per month, plus HST. | | | | | | |
| Depreciation expense will have to be calculated monthly. | | | | | |
| Supplies of $200 (plus HST) per month will be purchased as they are used. | | | | |
| The prepaid airline ticket will be used in May. | | | | | | |
| Monthly maintenance is $800 per month + HST | | | | | | |
| There are no professional fees incurred in this quarter. | | | | | |
| Ignore WSIB expense and income tax expense | | | | | | |
| When preparing your cash budget, there is no minimum cash balance required. | | |  |
Income Statement January 1 - March 31, 2021 REVENUE Revenue Consulting Fees 70,355.00 Other Revenue 0.00 Total Revenue 70,355.00 TOTAL REVENUE 70,355.00 EXPENSE Expenses Bad Debts 0.00 Bank charges and interest 520.00 CPP Expense 2,632.80 Depreciation Expense 2,525.00 El Expense 1,307.25 Insurance Expense 0.00 Interest Expense 197.00 Office Expenses 84.00 Professional Fees 2,300.00 Rent Expense 9,000,00 Repairs and Maintenance Expense 2,400.00 Salaries Expense 56,250.00 Supplies Expense 550.00 Telephone Expense 2,975.00 Travel Expense 0.00 WSIB Expense 0.00 Corporate Income Tax Expense 0.00 Total Expenses 80,741.05 TOTAL EXPENSE 80,741.05 NET INCOME -10,386.05 Account Number Account Description 1020 Petty Cash 1040 BNS Cash 1060 Accounts Receivable 1070 Allowance for doubtful accounts 1090 Office Supplies 1100 Prepaid Expenses 1140 Office Equipment 1150 Acc'd dep'n office equipment 1170 Computers 1180 Acc'd Dep'n - computers 1200 Software 1210 Acc'd Dep'n - software 2010 Banking operating line 2015 Interest Payable 2020 Accounts Payable 2030 Wages Payable 2040 Unearned Revenue 2050 WSIB Payable 2060 CPP Payable 2070 El Payable 2080 Income Tax Payable 2100 HST charged on sales 2110 ITC's 2150 Due to shareholder 3010 Common Stock 3030 Current Earnings 4010 Consulting Fees 4020 Other Revenue 5010 Bad Debts 5020 Bank charges and interest 5030 CPP Expense 5040 Depreciation Expense 5050 El Expense 5060 Insurance Expense 5065 Interest Expense 5070 Office Expenses 5080 Professional Fees 5090 Rent Expense 5100 Repairs and Maintenance Expens 5110 Salaries Expense 5120 Supplies Expense 5130 Telephone Expense 5140 Travel Expense 5150 WSIB Expense 5160 Corporate Income Tax Expense Trial Balance As at March 31, 2021 Debits Credits 166.00 0.00 4.558,68 0.00 35,996,15 0.00 0.00 0.00 450.00 0.00 0.00 0.00 4,000.00 0.00 0.00 0.00 3,000.00 0.00 0.00 1,800.00 1,450.00 0.00 0.00 725.00 0.00 20,000.00 0.00 197.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,864.52 0.00 796.80 0.00 3,873.66 0.00 9,146.15 3,396.25 0.00 0.00 24,990.00 10.00 0.00 0.00 0.00 0.00 70,355.00 0.00 0.00 0.00 0.00 520.00 0.00 2,632.80 0.00 2,525.00 0.00 1,307.25 0.00 0.00 0.00 197.00 0.00 84.00 0.00 2,300.00 0.00 9,000.00 0.00 2,400.00 0.00 56,250.00 0.00 550.00 0.00 2,975.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 133,758.13 133,758.13 Income Statement January 1 - March 31, 2021 REVENUE Revenue Consulting Fees 70,355.00 Other Revenue 0.00 Total Revenue 70,355.00 TOTAL REVENUE 70,355.00 EXPENSE Expenses Bad Debts 0.00 Bank charges and interest 520.00 CPP Expense 2,632.80 Depreciation Expense 2,525.00 El Expense 1,307.25 Insurance Expense 0.00 Interest Expense 197.00 Office Expenses 84.00 Professional Fees 2,300.00 Rent Expense 9,000,00 Repairs and Maintenance Expense 2,400.00 Salaries Expense 56,250.00 Supplies Expense 550.00 Telephone Expense 2,975.00 Travel Expense 0.00 WSIB Expense 0.00 Corporate Income Tax Expense 0.00 Total Expenses 80,741.05 TOTAL EXPENSE 80,741.05 NET INCOME -10,386.05 Account Number Account Description 1020 Petty Cash 1040 BNS Cash 1060 Accounts Receivable 1070 Allowance for doubtful accounts 1090 Office Supplies 1100 Prepaid Expenses 1140 Office Equipment 1150 Acc'd dep'n office equipment 1170 Computers 1180 Acc'd Dep'n - computers 1200 Software 1210 Acc'd Dep'n - software 2010 Banking operating line 2015 Interest Payable 2020 Accounts Payable 2030 Wages Payable 2040 Unearned Revenue 2050 WSIB Payable 2060 CPP Payable 2070 El Payable 2080 Income Tax Payable 2100 HST charged on sales 2110 ITC's 2150 Due to shareholder 3010 Common Stock 3030 Current Earnings 4010 Consulting Fees 4020 Other Revenue 5010 Bad Debts 5020 Bank charges and interest 5030 CPP Expense 5040 Depreciation Expense 5050 El Expense 5060 Insurance Expense 5065 Interest Expense 5070 Office Expenses 5080 Professional Fees 5090 Rent Expense 5100 Repairs and Maintenance Expens 5110 Salaries Expense 5120 Supplies Expense 5130 Telephone Expense 5140 Travel Expense 5150 WSIB Expense 5160 Corporate Income Tax Expense Trial Balance As at March 31, 2021 Debits Credits 166.00 0.00 4.558,68 0.00 35,996,15 0.00 0.00 0.00 450.00 0.00 0.00 0.00 4,000.00 0.00 0.00 0.00 3,000.00 0.00 0.00 1,800.00 1,450.00 0.00 0.00 725.00 0.00 20,000.00 0.00 197.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,864.52 0.00 796.80 0.00 3,873.66 0.00 9,146.15 3,396.25 0.00 0.00 24,990.00 10.00 0.00 0.00 0.00 0.00 70,355.00 0.00 0.00 0.00 0.00 520.00 0.00 2,632.80 0.00 2,525.00 0.00 1,307.25 0.00 0.00 0.00 197.00 0.00 84.00 0.00 2,300.00 0.00 9,000.00 0.00 2,400.00 0.00 56,250.00 0.00 550.00 0.00 2,975.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 133,758.13 133,758.13
