The note is at 10 percent per annum and requires monthly

Question

Techlabs operates a computer training center. The following data relate to the preparation of a master budget for January 2012.
1. At the end of 2011, the company's general ledger indicated the following balances:

2. Tuition revenue in December 2011 was 80,000, and tuition revenue budgeted for January 2012 is 90,000.
3. Fifty percent of tuition revenue is collected in the month earned, and 50 percent is collected in the subsequent month. The receivable balance at the end of 2012 reflects tuition earned in December 2012.
4. Monthly expenses (excluding interest expense) are budgeted as follows: salaries, 40,000; rent, 5,000; depreciation on equipment, 7,000; utilities, 800; other, 2,000.
5. Expenses are paid in the month incurred. Purchases of equipment are paid in the month after purchase. The 40,000 payable at the end of 2011 represents money owed for the purchase of computer equipment in December 2011.
6. The company intends to purchase 30,000 of computer equipment in January 2012. The anticipated 7,000 per month of depreciation (see number 4) reflects the addition of 1,000 of monthly depreciation related to this purchase.
7. The note is at 10 percent per annum and requires monthly interest payments of 500. The payments are made on the 20th of each month. The principal must be paid in February of 2013.
8. The tax rate is 35 percent.

Required:

Complete the following budgets:
a.Cash Budget
For January 2012
Cash receipts
Collection of December 2011 tuition...........
Collection of January 2012 tuition ............
Total cash receipts .................
Cash disbursements 
Payment of salaries
Payment of rent
Payment of utilities
Payment of other expenses
Payment for purchases of computer equipment
Payment of interest on note
Payment of taxes ...................
Total disbursements ..................
Plus beginning cash balance ................
Ending cash balance .................... 
b.Budget Income Statement
For January 2012
Tuition revenue ......................... 
Less:
Salaries
Rent
Utilities
Depreciation
Other
Interest expense .......................
Total expense ..........................
Income before taxes
Taxes on income ....................
Net income ............................. .
c.Budgeted Balance Sheet
As of January 30, 2012
Assets
Cash .......................................
Accounts receivable
Equipment (net) ......................
Total assets ..............................
Liabilities
Accounts payable ...................
Note payable ..........................
Total liabilities ........................
Stockholders equity
Common stock
Retained earnings ...................
Total stockholders equity ...............
Total liabilities and stockholders' equity ........