1.) Prepare a schedule of cost of services provided, using the provided information. Adjust information from a cash basis to an accrual basis.
Income Statement For the Eight Months Ended April 30, 2021 Revenues $997,500 Expenses 23,000 Marketing Instructional Vehicles (For repair purposes only) Administrative wages Facility rentals paid Equipment & Tools - Repair Shop Electricity-Classroom & Shop Supplies-Shop Supplies head office Student Tools purchased Sales commissions Rent-Head office Lecturers' wages Qualified Mechanics Wages Head office expenses Interest paid to Syndicate Janitorial - Head office Supervisor salaries 625.000 25,000 487.500 81.250 11.250 3.500 1.125 93.750 36.250 30.750 131.250 157.000 148,750 41.250 8.000 81000 Total Expenses 1.985.625 Net Loss $(988, 125) Capital Costs Expected Estimated Useful Life Salvage Value Note 1 Instructional Vehicles Equipment and Tools 10 Years NIL 5 Years 20% of original cos Note 2 Note 1- Source: discussed with Garth McGorman at North Island College Note 2- Source: discussed with Snap-On Tools salesman Ongoing Course Development Calculated cost of Materials/Labour and Overhead for Course design and development to April 30, 2021 84.400.00 95.000 12,500 Prepaid Facility Rentals Rental Cost per year Annual Property Taxes Under the rental agreement 5 years of Rental Cost was paid at Sept i 2020 Annual Property Taxes are paid January 1 of each year. As of April 30, 2021 Receivables and Payables Student Fees Receivable Accounts payable - Student Tools Accounts payable- Janitorial 65,200.00 85,000.00 1.600.00 Total Accounts payable April 30, 2021 151,800.00 Income Statement For the Eight Months Ended April 30, 2021 Revenues $997,500 Expenses 23,000 Marketing Instructional Vehicles (For repair purposes only) Administrative wages Facility rentals paid Equipment & Tools - Repair Shop Electricity-Classroom & Shop Supplies-Shop Supplies head office Student Tools purchased Sales commissions Rent-Head office Lecturers' wages Qualified Mechanics Wages Head office expenses Interest paid to Syndicate Janitorial - Head office Supervisor salaries 625.000 25,000 487.500 81.250 11.250 3.500 1.125 93.750 36.250 30.750 131.250 157.000 148,750 41.250 8.000 81000 Total Expenses 1.985.625 Net Loss $(988, 125) Capital Costs Expected Estimated Useful Life Salvage Value Note 1 Instructional Vehicles Equipment and Tools 10 Years NIL 5 Years 20% of original cos Note 2 Note 1- Source: discussed with Garth McGorman at North Island College Note 2- Source: discussed with Snap-On Tools salesman Ongoing Course Development Calculated cost of Materials/Labour and Overhead for Course design and development to April 30, 2021 84.400.00 95.000 12,500 Prepaid Facility Rentals Rental Cost per year Annual Property Taxes Under the rental agreement 5 years of Rental Cost was paid at Sept i 2020 Annual Property Taxes are paid January 1 of each year. As of April 30, 2021 Receivables and Payables Student Fees Receivable Accounts payable - Student Tools Accounts payable- Janitorial 65,200.00 85,000.00 1.600.00 Total Accounts payable April 30, 2021 151,800.00
