You started corporation form of business with issue of total $4000$ @ $3$ per share common shares in the year $2022$ and money is received in cash. See following information :

$1.$ First issued $1500$ common share outstanding for $5$ months @ $3$ per share

$2.$ Later company issued $2500$ common share outstanding for $7$ months @ $3$ per share

$3.$ Deposited $$7500$ cash into Scotia Bank.

$4.$ Commission is paid $$250$ by cash

$5.$ Rent of building paid by cash $$1200$

$6.$ Received $$6000$ cash as service revenue

$7.$ Laptop is purchased for business of $ $500$ and payment is made by cheque

$8.$ Advertisement Expenses are paid by cheque $$320$

$9.$ Long term loan $$2500$ is taken from scotia bank $10.$Bought Furniture on Credit from IKEA $ $1000$

$11.$ short term loan from friend Ms$.$ Meera Cash $$1100$

$12.$ Assume Income Tax is $20\%$ on Profit is due to CRA but not paid at the end of year.

$13.$ Dividend is paid $10\%$ on Net Profit $($ Profit $–$ Tax$)$ by cheque to its shareholders.

To solve this project you need to calculate :

Prepare Journal $,$ Ledger, Trial balance, Income Statement, Balance sheet, EPS, ROE, Current Ration in MS Excel and Upload under AmpEductor.

a$.$ Profit before Tax, Tax Amount, Profit After Tax, Dividend Amount, Retained Earning, Shareholder Equity.

b$.$ Assume Income Tax is $20\%$ on Profit is due but not paid at the end of year.

c$.$ Company has opened chequing account in Scotia Bank.

d$.$ If share split is $2$:$1$ what will be the EPS $?$

e$.$ If share Reverse split is $1$:$5$ what will be the EPS $?$

f$.$ Retained Earning $?$

g$.$ Current Ratio $=$ Current Assets$/$ current Liabilities.

Answer rating: 100% (QA)

Financial Statements for the Corporation We can set up the financial statements for the corporation in MS Excel as requested Heres a breakdown of each ... View the full answer