Question

Mike plans to begin his consulting business as a proprietary company (Mike Pty Ltd) on 1 January 2022. He has provided projected data for the first 36 months of operations. He expects to pay income taxes of 45% on the company's profits six months after each year-end. No taxes if the company incurred a loss for the year.

COMPLETE THE PROJECTED FINANCIAL STATEMENTS FOR EACH OF THE 3 YEARS

Transaction 1-Jan-22 Open business bank account with transfer of personal funds 1-Jan-22 EFT for rental of office space. Immediate occupancy. 48 months at $4500 per month.

1-Jan-22 Office equipment purchased for cash to get discount from the retail price of $67,000.

1-Jan-22 Office equipment to be replaced in 4 years. Expect to get $6,000 for old equipment.

3-Jan-22 Bank loan approved and credited to account. Payable in 2025 24-Jun-22 Credit sales. EFT payment to be received in 90 days.

30-Jun-22 Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days.

18-Jul-22 Cash sales.

25-Jul-22 Purchased supplies on credit from Office Works.

9-Dec-22 Credit sales. EFT payment to be received in 90 days.

27-Dec-22 Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days.

31-Dec-22 Recorded estimate for electricity expense. Bill not yet received.

31-Dec-22 Count of supplies revealed showed amount on hand at year-end of.

28-Jun-23 Credit sales. EFT payment to be received in 90 days.

2-Jul-23 Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days.

4-Jul-23 Cash sales.

27-Jul-23 Purchased supplies on credit from Office Works

31-Jul-23 Used excess cash to make partial payments on bank loan.

13-Dec-23 Credit sales. EFT payment to be received in 90 days.

27-Dec-23 Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days.

31-Dec-23 Recorded estimate for electricity expense. Bill not yet received.

31-Dec-23 Count of supplies revealed showed amount on hand at year-end of .

30-Jun-24 Credit sales. EFT payment to be received in 90 days.

6-Jul-24 Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days.

25-Jul-24 Paid Office Work account in full.

10-Jul-24 Used excess cash to make partial repayment on bank loan.

4-Aug-24 Cash sales.

19-Dec-24 Credit sales. EFT payment to be received in 90 days.

29-Dec-24 Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days.

Received bill for electricity. For three years!!! Mike thought he was never going to get billed.

31-Dec-24 31-Dec-24 Count of supplies revealed showed amount on hand at year-end of .

$430,000 $216,000 $60,000 $6,000 $210,000 $53,000 $8,100 $26,000 $36,500 $42,500 $8,910 $5,400 $14,600 $33,500 $6,500 $71,000 $45,500 $43,000 $35,000 $7,150 $5,940 $4,550 $54,000 $8,200 $82,000 $49,500 $41,000 $48,000