Assignment

Landscaping Smart Inc. is a well reputable company providing landscaping services to Canadian customers since 1995. Its owner, Sonny Smooth hired you as a Controller to help him compile financial reports as he would like to apply for a loan. He had an accountant Johnny Lo, who did reports and who just recently retired but worked for Sonny since the company started operating 26 years ago. Sonny has never had time to learn accounting and was constantly relying on his loyal employee.

Because Landscaping Smart had been doing well for so long, Sonny decided to expand his business. He was impressed with your credentials and work experience and believed that you are the best candidate for this job. Since he never prepared financial statements and his accountant just retired, he asked you to help him in his application project for a bank loan.

On your first day at work, you printed a list of accounts as of December 31, 2021 (see below) and started working on a preparation of financial statements.

Maintenance Supplies	$700
Truck	120,870
Common Shares	2,000
Insurance Expense	500
Accounts Receivable	9,200
Cash	12,000
Dividends	4,000
Landscaping Equipment	25,000
Beginning Retained Earnings	135,000
Maintenance Supplies Expense	1,200
Service Revenue	44,000
Salary Expense	12,000
Rent Expense	6,000
Note Payable	9,500
Interest Payable	350
Utility Expense	530
Accounts Payable	3,300
Interest Expense	350
Lawn Mower	1,800

Requirements:

1. Prepare the companys balance sheet at December 31, 2021. (10 marks)
2. As Controller of Landscaping Smart Inc. would you be pleased with Landscaping Smarts overall performance in 2021? Briefly explain. (5 marks)
3. Write a brief report to Bank of Montreal communicating financial and nonfinancial information and why the bank should lend money to Landscaping Smart Inc. (20 marks)

(Maximum 500 words)