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You are the founder of MEGA - Unicorn Inc and just completed the first year of operation ended June 3 0 , 2 0 2
You are the founder of MEGAUnicorn Inc and just completed the first year of operation ended June Companys fiscal year is from July to June As an earlystage startup you dont have the luxury to hire a fulltime 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 MEGAUnicorn. The companys policy is to recognize revenues when sales occur and the product has been successfully delivered to the customer. All amounts in CAD.
On July you contributed $ in exchange for shares of common stock. The full amount is deposited in cash.
On July MEGAUnicorn rented an office building for $ 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 $ were paid in Cash as of June
On July MEGAUnicorn bought inventories on account from ABC for $ for a total of units.
On July MEGAUnicorn purchased computers office equipment for $ fully paid in cash. Straightline depreciation method is applied and the computers have a useful life of years.
On July MEGAUnicorn spent $ in advertising, which has been paid in cash.
On August MEGAUnicorn sold units of its inventories to Customer A for a total of
$fully delivered, revenue can be recognized Customer A paid $ via cheque which is deposited in the cash account and the remaining to be paid within days.
On August MEGAUnicorn paid ABC $ in cash.
On October MEGAUnicorn did not receive the remaining payment from Customer A after days and had to write off the receivable amount.
On June MEGAUnicorn sold another units of its inventories to Customer B for a total of $ which was received in cash and on account to be paid in August Only units were delivered to Customer B by end of June ie only revenue associated with the units can be recognized, remaining units cannot be recognized as revenue until they are delivered
On June MEGAUnicorn purchased XYZ Solution Inc for $ in cash settlement.
XYZs net asset value was $
On June MEGAUnicorn paid your annual salary of $ in cash.
On June MEGAUnicorn declared and paid out a dividend of $ per share in cash.
On June MEGAUnicorn owes the government income taxes. As a CCPC Canadian controlled private corporations located in Ontario, MEGAUnicorns tax rate is on total income before taxes operating incomegainlossesother income The income tax owed is to be paid in the future.
Requirements
Please create the following financial statements for MEGAUnicorn for the July June year in Excel.
Income Statement
Balance Sheet
Direct Cash Flow Statement
Indirect Cash Flow Statement
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