You are the founder of MEGA$-$Unicorn Inc and just completed the first year of operation ended June $30,$

$2021($Company$$s fiscal year is from July $1,2020$ to June $30,2021).$ As an early$-$stage start$-$up$,$ you don$$t

have the luxury to hire a full$-$time accountant, as a result, you decided to put the valuable accounting

skills that you learned from the MMEGA program at test. Following are a list of transactions that have

occurred in the first year of operation for MEGA$-$Unicorn. The company$$s policy is to recognize revenues

when sales occur and the product has been successfully delivered to the customer. All amounts in CAD.

$1.$ On July $1,2020,$ you contributed $$1,000,000$ in exchange for $10,000$ shares of common stock.

The full amount is deposited in cash.

$2.$ On July $1,2020,$ MEGA$-$Unicorn rented an office building for $$10,000$ a month. The landlord

requires the rent to be paid up front for each month and also requires a last month deposit.

Therefore, a total of $$130,000$ were paid in Cash as of June $30,2021.$

$3.$ On July $1,2020,$ MEGA$-$Unicorn bought inventories on account from ABC for $$400,000$ for a total

of $1,000$ units.

$4.$ On July $1,2020,$ MEGA$-$Unicorn purchased computers $($office equipment$)$ for $$12,000,$ fully paid

in cash. Straight$-$line depreciation method is applied and the computers have a useful life of $3$

years.

$5.$ On July $31,2020,$ MEGA$-$Unicorn spent $$20,000$ in advertising, which has been paid in cash.

$6.$ On August $1,2020,$ MEGA$-$Unicorn sold $250$ units of its inventories to Customer A for a total of

$$250,000($fully delivered, revenue can be recognized$).$ Customer A paid $$200,000$ via cheque

which is deposited in the cash account and the remaining to be paid within $30$ days.

$7.$ On August $1,2020,$ MEGA$-$Unicorn paid ABC $$400,000$ in cash.

$8.$ On October $31,2020,$ MEGA$-$Unicorn did not receive the remaining payment from

Customer A after $90$ days and had to write off the receivable amount.

$9.$ On June $1,2021,$ MEGA$-$Unicorn sold another $500$ units of its inventories to Customer B for a

total of $$500,000,$ which $80\%$ was received in cash and $20\%$ on account to be paid in August

$2021.$ Only $300$ units were delivered to Customer B by end of June $30,2021($i$.$e$.,$ only revenue

associated with the $300$ units can be recognized, remaining $200$ units cannot be recognized as

revenue until they are delivered$).$

$10.$ On June $30,2021,$ MEGA$-$Unicorn purchased XYZ Solution Inc for $$300,000$ in cash settlement.

XYZ$$s net asset value was $$200,000.$

$11.$ On June $30,2021,$ MEGA$-$Unicorn paid your annual salary of $$50,000$ in cash.

$12.$ On June $30,2021,$ MEGA$-$Unicorn declared and paid out a dividend of $$0\mathrm{.}1$ per share in cash.

$13.$ On June $30,2021,$ MEGA$-$Unicorn owes the government income taxes. As a CCPC $($Canadian$-$

controlled private corporations$)$ located in Ontario, MEGA$-$Unicorn$$s tax rate is $3\mathrm{.}5\%$ on total

income before taxes $($operating income$+$gain$/$losses$+$other income$).$ The income tax owed is to

be paid in the future.

Requirements

Please create the following financial statements for MEGA$-$Unicorn for the July $1,2020$ June $30,$

$2021$ year in Excel.

$1.$ Income Statement

$2.$ Balance Sheet

$3.$ Direct Cash Flow Statement

$4.$ Indirect Cash Flow Statement

Use the Excel template provided to help you create the financial statements. Make sure you link the

numbers whenever you can which allows me to award part$-$marks when applicable.