I need help on this read from bottom to top. 

 

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7"} The second ?nancial statement to prepare is the statement of retained earnings. To determine the ending balance of retained earnings you need to start with the opening balance as reported in the last balance sheet, in this case let's assume itwas $1,655.32 (if the case is about the first period in the life ofa company the opening balance is zero}, add the net income of the period (or subtract the net loss of the period} and subtract the dividends declared in the period. All transactions arejoumalized and posted: Entry is Date Acccu nts Dr Cr 24 July 3lst Income Summary 1823.00 Retained Earnings 1823.00 Accumulate current income in RE 25 July 3151: Dividends 1000.00 Dividends Payable 1000.00 Declare dividends of the period 26 July 315t Retained Earnings 1000.00 Dividends 1000.00 Deduct Dividends from RE Income Summary Dividends Dividends Payable Retained Earnings Dr Cr D r Cr D r Cr D r Cr 1823.00 1000.00 1000.00 1665.32 1823.00 1000.00 1823.00 1000.00 8) With the ending balance of Retained Earnings determined, you are ready to prepare the Balance Sheet by bringing in all the ending balance of all accounts. At this stage only assets, liabilities and owners' equity accounts do have a balance. The ending balance of July is rep orted in the Balance sheet of .lu ly and that same July" s ending balance is August" s opening balance. 9) At this stage of your term project, we suggest you clean your notes and put them in a presentable format that would include all journal entries, all T accounts, the banlc reconciliation, the income statement, the statement of retained eamings, the balance sheet and the answers to the specific questions of the term project 

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Prepaid Office Supplies Office Supplies Expense Dr Cr Dr Opening Balance: 45.00 195.00 Purchase in the period: 210.00 Usage in the period: 195.00 Ending Balance: 60.00 Where the ending balance satisfies the condition that appears at the bottom of the invoice as a hand written note: Value of supplies available at August 31: 8(56) (5a) The amount must be equal to 70 times the last digit of your student number (office supplies) (5b) The amount must be equal to 20 times the last digit of your student number (office supplies) 5) If all transactions and AJE have been recorded, then it is time to calculate the ending balance of all T accounts and build the Trial balance to check if the sum of all debits is equal to the sum of all credits. 6) If the trial balance balances, then it is time to start preparing the financial statements. We start determining the net income or net loss of the period. The income is determined as the difference between revenue and expenses for the period and it is journalized and then posted resulting in all Revenue and Expenses accounts to have ending balances of zero. The temporary account Income Summary is used to hold the income (loss) until it is moved to Retained Earnings. The Income statement reflects the journal entry: Date r Account Type of Dr Cr Account 31 July 44 Revenue Services Revenue 3,300.00 Cost of goods sold Expense 325 Accountant Fee Expense Expense 150 Bank Service expense Expense 52 Electrician Expense Expense 80 Interest Expense Expense 25 Insurance Expense Expense 25 Phone Expense Expense 45 Promotion and Publicity Expense Expense 67 Depreciation expense - Tools Expense 180 Office supplies expense Expense 70 Rent Expense Expense 100 Supplies Expense Expense 133 Income Tax Expense Expense 225 Income Summary Temp 1823.00 Explanation: closing of temporary accounts to determine Net Income for the month of July 2021 

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Entry # Date Accounts Dr Cr 11 August 12th Prepaid Office Supplies 210.00 Cash 210.00 Purchase of
office supplies 21 August 31st Office Supplies Expense 195.00 Prepaid Office Supplies 195.00 AJE for
office supplies used

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Disbursements Journal Bank AMD Canada Statement of 2594 Dimple Crescent Disbursement mode Amount Reason Toronto ON M3J 1P7 CHEQUE 30 (1) Rent (4 months) CHEQUE 29 (2) 3061 Insurance (2 years) Branch CHEQUE 35 (3) Bob fix-it-all Inventory CHEQUE 32 (4) 9709 Keele St. - Unit 14 Promotion Maple ON CHEQUE 31 (5) Publicity CHEQUE 33 (6) Van Date Description Withdrawal $1,000 July's Dividends August 1 Opening Balance CHEQUE 34 $276 Supplies (durabond) August 1 CHEQUE #30 CHEQUE 36 (5) Office supplies August 1 CHEQUE #29 CHEQUE 28 $225 July's Income tax August 1 Transfer from Line of Credit Bank debit (10) Bank Overdraft Fee August 1 CHEQUE #33 CHEQUE 37 $650 Electrician services August 1 CHEQUE #31 Bank debit (11) Bank fee August 1 CHEQUE #32 August 1 Withdrawal August 1 CHEQUE #35 August 3 CHEQUE #34 August 12 CHEQUE #36 August 14 CHEQUE #28 August 17 FEE BANK OVERDRAFT August 2 to 16 August 31 DEPOSITs August 31 CHEQUE #37 August 31 DEPOSITs August 31 MONTHLY SERVICE CHARGE TOTALS 

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STAPLES Quantity Price Total Office Supplies Paper and Pads Pens, correctors, markers Binders Paid with Cheque # 36 Labels and plastic tags Stapler, Puncher Scissors Total $(5a) easy Store 2015 HW7 & Weston 1-877-360-8500 Leam more August 12, 2021 18:36:05 Value of supplies available a August 31: 3(56) (5a) The amount must be equal to 70 times the last digit of your student number (office supplies) (5b) The amount must be equal to 20 times the last digit of your student number (office supplies) 

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If the term project is not from the first period in the life of a company, then there are other AJEs caused by events or transactions from past periods. To identify those recurring AJE it is suggested to review the financial statements to identify those that might be needed and then check the details One of those typical recurring AJE is the depreciation/am ortization of long-lived assets that were acquired in previous periods and have not exhausted their useful life Financial Statements: Bob fix-it-all Service Ltd. Bob fix-it-all Service Ltd. Income Statement For the month July 2021 Revenue Services 3,300.00 Expenses Cost of goods sold 325.00 Accountant Fee Expense 150.00 Bank Service Expense 52.00 Electrician Fee Expense 80.00 Interest Expense 25.00 Insurance Expense 25.00 Phone Expense 45.00 Promotion and Publicity Expense 67.00 Depreciation expense - Tools 180.00 Office supplies expense 70.00 Rent Expense 100.00 Supplies Expense 133.00 Income before income taxes 2,048.00 Income Tax Expense 225.00 Net Income 1,823.00 There are other types of AJE that are different if the case is about the first period or a subsequent period in the life of a company. Some accounts have an opening balance that affects the amount of the AJE. One good example is how to determine the office supplies used (consumed) in the period. For instance, to determine the AJE for office supplies used in August, you will need to start from how much office supplies were available at the beginning of August (shown on July 2021 Balance sheet: $45 of office supplies available on July 31st, 2021), then find a related invoice in August that contains the cost of the purchase of office supplies during the month of August (see invoice from August 12"), and then using the notes on how much is available at the end of the period determine how much worth of office supplies were used during the whole month of August. The chain of documents to consider and the journal entries with their posting in this example are as follows: Bob fix-it-all Service Ltd. Statement of Financial Position July 31st 2021 ASSETS Current Assets Cash 4480.32 Accounts Receivables 1,280.00 Inventory 0.00 Prepaid Office Supplies 45.00 

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The bank statement contains transactions that are not always done with cheques issued by the company, as a first step you need to identify those funds and determine what is the reason for them. In the example there are four movement of funds that need further analysis (explanation of their reasons) and their respective journal entries and posting. Normally, deposits received are the result of revenues or advances from customers: Bank AMD Canada Statement of Account 2594 Dimple Crescent Account 3061-001-33478 Toronto ON M3J 1P7 Chequing Account Statement Date Branch 3061 August 31, 2021 Bob fix-it-all 9709 Keele St. - Unit 14 Maple ON Date Description Debits Credits Balance August 1 Opening Balance 4480.32 August 1 CHEQUE #30 (1) August 1 CHEQUE #29 (2) August 1 Transfer from Line of Credit (6a) August 1 CHEQUE #33 (6) August 1 CHEQUE #31 (5) August 1 CHEQUE #32 (4) August 1 Withdrawal 1,000.00 August 1 CHEQUE #35 (3) August 3 CHEQUE #34 276.00 August 12 CHEQUE #36 165.00 August 14 CHEQUE #28 225.00 August 17 FEE BANK OVERDRAFT August 2 to 16 (10) August 31 DEPOSITS 7) August 31 CHEQUE #37 650.00 August 31 DEPOSITS (7a) August 31 MONTHLY SERVICE CHARGE (11) TOTALS 4) Once you are certain there are no more transactions that happened in the period based on the documentation you received, you can start working on the Adjusting Journal Entries (AJE). Some AJE are caused by events happening in the period as shown above with the example of prepaid rent and prepaid insurance. If the case is about the first period in the life of a company, all AJE are caused by transactions that happened in the period. Entry # Date Accounts Dr Cr 18 August 31s1 Rent Expense 150.00 Prepaid Rent 450.00 Recognize the rent expense 19 August 31si Insurance Expense Prepaid Insurance Determine the insurance expense Prepaid Rent Prepaid Insurance Rent Expense Insurance Expense Dr Dr Cr Dr Cr Dr Cr 1800.00 2160.00 450.00 450.00 O 

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Bank AMD Canada Statement of Account Disbursements Journal 2594 Dimple Crescent Account 3061-001-33478 Toronto ON M3J 1P7 Chequing Account Disbursement mode Amount Reason Statement Date CHEQUE 30 (1) Rent (4 months) Branch 3061 August 31, 2024 CHEQUE 29 (2) Insurance (2 years) CHEQUE 35 (3) Bob fix-it-all Inventory CHEQUE 32 (4) 9709 Keele St. - Unit 14 Promotion CHEQUE 31 (5) Publicity Maple ON CHEQUE 33 (6) Van Date Description Debits Credits Balance Withdrawal $1,000 July's Dividends August 1 Opening Balance 4480.32 VCHEQUE 34 $276 Supplies (durabond) August 1 CHEQUE #30 (1) CHEQUE 36 $165 Office supplies August 1 CHEQUE #29 (21 CHEQUE 28 $225 July's Income tax August 1 Transfer from Line of Credit (621 Bank debit (10) Bank Overdraft Fee CHEQUE 37 $650 Electrician services August 1 CHEQUE #33 (6) Bank debit (11) Bank fee August 1 CHEQUE #31 August 1 CHEQUE #32 August 1 Withdrawal 1,000.00 August 1 CHEQUE #35 (3) August 3 CHEQUE #34 278:00 August 12 CHEQUE #36 165:00 August 14 CHEQUE #28 225.00 August 17 FEE BANK OVERDRAFT August 2 to 16 (10) August 31 DEPOSITs (7) August 31 CHEQUE #37 650.00 August 31 DEPOSITs (7a) August 31 MONTHLY SERVICE CHARGE (11) TOTALS 

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Bob Thoron representing Bob ?x-it-all Ltd. Agrees to pay Bob Theron (the individual owner of the property Where commercial activities are developed by Bob ?x-it-all) thi sum of 1 for the mont t Se tember October and November. This document acts as a receipt to both parties that the service has been agreed and paid in advance. harmony. The AJE will debit Rent Expense and will credit Prepaid Rent for one fourth of the amount paid because the pre-paid rent was for 4 months: Cash Prep aid Rent DrPrepaid Insurance Rent Expense 0 4430.00 1300. 00 C30 2150. 00 1300.00 2160.00 3) Once you have joumalized and posted all transactions associated with the receipts and other documents submitted by the company, check all items listed in the bank statement and disbursement journal have been accounted for. This is the time to do the bank and cash 

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Bank AMD Canada Statement of Account 2594 Dimple Crescent Account 3061-001-33478 Toronto ON M3J 1P7 Chequing Account Statement Date Branch 3061 August 31, 2021 Bob fix-it-all 9709 Keele St. - Unit 14 Maple ON Date Description Debits Credits Balance August 1 Opening Balance 4480.32 August 1 CHEQUE #30 (1 ) August 1 CHEQUE #29 (2) August Transfer from Line of Credit (6a) August 1 CHEQUE #33 (6) August 1 CHEQUE #31 (5) August 1 CHEQUE #32 (4) August 1 Withdrawal 1,000.00 August 1 CHEQUE #35 (3) August 3 CHEQUE #34 276.00 August 12 CHEQUE #36 165.00 August 14 CHEQUE #28 225.00 August 17 FEE BANK OVERDRAFT August 2 to 16 (10) August 31 DEPOSITs (7) August 31 CHEQUE #37 650.00 August 31 DEPOSITs ( 7 a ) August 31 MONTHLY SERVICE CHARGE (11) TOTALS Notes: (1) The amount must be equal to 600 times the last digit of your student number (rent) (2) The amount must be equal to 720 times the last digit of your student number (insurance) (3) The amount must be equal to 50% of 530 times the last digit of your student number (inventory) (4) The amount must be equal to 100 times the last digit of your student number (promotion) (5) The amount must be equal to 70 times the last digit of your student number (publicity) In the situation illustrated above, the first transactions will be rent while insurance will be the second. To record both transactions the journal entries involving all three assets' accounts and their posting are: Entry # Date Accounts Dr Cr 1 August 1st Prepaid Rent 1800.00 Cash 1800.00 Prepayment of rent 2 August 1st Prepaid Insurance 2160.00 Cash 2160.00 Prepayment of insurance Cash Prepaid Rent Prepaid Insurance Dr Cr Dr Dr Cr 4480.32 1800.00 2160.00 1800.00 2160.00 Looking at the documents in the case you find the following and noticed an adjusting journal entry will need to be made at the end of the period (note how the number of the cheque used is the same that appears in the bank statement): 

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Bank AMD Canada Statement of Account 2594 Dimple Crescent Account 3061-001-33478 Toronto ON M3J 1P7 Chequing Account Statement Date Branch 3061 April 30, 201X Bob fix-it-all 9709 Keele St. - Unit 14 Maple ON Date Description Debits Credits Balance April 1 DEPOSIT (2) April 1 CHEQUE #1 April 1 CHEQUE #2 April 1 CHEQUE #3 (5) April 1 CHEQUE #4 (6 ) April 1 CHEQUE #5 (7 ) April 1 CHEQUE #6 (8) April 1 CHEQUE #7 (9) April 1 CHEQUE #8 (10) April 1 CHEQUE #9 (11) April 17 FEE BANK OVERDRAFT April 2 to 16 (17) April 17 DEPOSITS (13) April 30 CHEQUE #10 (12) April 1-30 DEPOSITs (13) April 30 MONTHLY SERVICE CHARGE ( 18) TOTALS Notes: (1) The amount must be equal to 100 times the last digit of your student number (lawyer) (2) The amount must be equal to 1,000 times the last digit of your student number (Bob's contribution) If your student number ends with 3, then the first journal entry and its posting would look like this (the rest of this document assumes your student number ends with 3 for all calculations that the case in the term project says to use the last digit of your student number): Entry # Date Accounts Dr Cr 1 April 1st Cash 3000.00 Share Capital 3000.00 To record Bob's contribution And its posting on the account is like this: Cash Share Capital Dr Cr Dr 3000.00 3000.00 But if the case is not about the first period in the life of the company, then you have to read the case and look at the documents submitted by the owner to determine which was the first transaction of the month that needs to be recorded in the company's books. One good guide is to follow the sequence shown in the bank account statement: 

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How do you determine if the case is about the first period or not? Assume that after reading the set up you notice the business starts operation on April 1, 2021, and you are asked to prepare the financial statements for the company only for the month August, 2021 (not the first period in the life of the company), this reflects the company has been operating for a while and still carries on (it is a going concern). When the case is not about the first period of operations, you have to pay attention to the details of all documents submitted by the owner. For instance, you may see an invoice indicating the company's spending in the past (April 1, 2021) and this spending had been recorded/journalized in the month of April, it is not a purchase in August (should not be recorded as purchase in August), however, any adjusting journal entry (to account for depreciation which is calculated based on the original invoice because of the historical cost principle as shown in this example) shall be properly accounted for in the month of August 2021. 105 lakeshore drive Paid with Cheque # 4 Toronto, ON M3S T2T phone: 416-878-9532 fax: 416-878-9533 Invoice # CT 6978 Invoice Date April 1, 2021 Terms: Due upon delivery of equipment Quantity Description Amount 20V Cordless Drill and Impact Driver Combo kit, 1.3 Ah 4,000 Cut Welder kit including: brass torch handle, cutting attachments and acetylene cylinder 2,480 2) Once you have determined the opening balances of assets, liabilities and owners' equity accounts you can move on to read the case and 1) identify all economic events that happened in the period that will need to be recorded, 2) sort them chronologically, 3) identify all AJE that are needed at the end of the period, and 4) start with the first transaction that needs to be recorded with a journal entry. If the case is about the first period in the life of a company, you will identify the initial contribution made in exchange for company's shares. First read the case set up and then look for the figures that appear as deposited in the bank account to determine the amount of the transaction: The company launched on April 1, 2021. Bob had accumulated savings and his life partner, who is still working full time, offered to match his contribution to the firm in the form of a loan with an interest rate of 0.5% per month payable on the New Year day of the following year. Bob contributed his savings in exchange for 50 of the shares (first 50 shares were issued) and Bob's partner matched with the same amount of cash. Bob deposited his contribution and his partner's matching into a new corporate bank account Bob had set up with AMD Bank Canada. The bank account, a standard commercial chequing account that gave cheques returned with monthly statements for a monthly fee, can have overdrafts at a fixed cost per day the account is in red. 

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Chart of Accounts Assets Expenses Accounts Receivables Accountant Fee Expense Accumulated Depreciation-Tools Bank Service Expense Accumulated Depreciation - Van Bank Overdraft Fees Cash Cost of Goods Sold Equipment - Tools Depreciation Expense - Tools Cash Accounts Receivables Bank Services Expense Cost of Goods Sold Dr cr Dr Dr Dr Cr 0.00 0.00 0.00 0.00 But if it is not the first period, and the case provides financial statements, then set up the T accounts for all accounts listed in the chart of accounts. For accounts included in the balance sheet, use those amounts as the opening balance while for the other accounts just place a zero as opening balance because revenue and expense accounts are closed (balance set to zero) at the end of the period when the financial statements are prepared: Chart of Accounts Assets Expenses Accounts Receivables Accountant Fee Expense Accumulated Depreciation-Tools Bank Service Expense Accumulated Depreciation - Van Bank Overdraft Fees Cash Cost of Goods Sold Equipment - Tools Depreciation Expense - Tools Statement of Financial Position July 31st 2021 ASSETS Current Assets Cash 4480.32 Accounts Receivables 1,280.00 Inventory 0.00 Prepaid Office Supplies 45.00 Prepaid Insurance 0.00 - . . Cash Accounts Receivables Bank Services Expense Cost of Goods Sold Dr Cr Dr Dr Cr 4480.32 1280.00 0.00 0.00 

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Instructions on how to approach the case of the Term project in ADMS2500 Read the case and understand each of the documents it includes. You are required to perform two activities at the same time: understand the business situation of the owner and decide if the documents your received from the owner have any impact in the company's accounts. The term project asks to prepare the journal entries for the period (including AJE for which the bank and cash reconciliation is needed), post them to the accounts and with the ending balances of those accounts prepare the financial statements. All the data needed is contained in the term project posted as Question 1 of this assignment. You can follow the sequence that best fits your experience. You can use an accounting software to record transactions and generate the financial statements as is done in almost all companies. However, the purpose of this assignment is to afford you the chance to do the whole process manually to help you understand how the accounting software operate internally. The case in the term project is very simple and involves a handful of transactions. One approach is to follow the seven steps detailed in the ebook by considering one transaction at the time, starting with the oldest transaction first and after finalizing with the last transaction of the period, check all items that need an Adjusting Journal Entries (AJE). Accounting Cycle when books and records are manually prepared and maintained Step (1) Analyze transactions and record on source documents Step (2) Record transactions in journals Step (3) Post journal entries to general ledger Step (4) Prepare a trial balance (to check debit-credit equality) Step (5) Prepare and record adjusting entries reconcile to underlying assets & liabilities review information for reasonableness Step (6) at period end only - Journalize and post closing entries to reset revenue and expense accounts to zero Step (7) Prepare another trial balance Step (8) Prepare financial statements Accounting Cycle in Computerized Systems Step (1) Analyze and record transactions Step (2) Prepare and record adjusting entries - reconcile to underlying assets & liabilities - review information for reasonableness Step (3) Prepare financial statements If you do not know how to approach the case in the term project, we suggest the following sequence (note that the examples provided here are fictitious and not related with the actual term project you have to work on this term): 1) Determine if the case is about the first period in the life of a company or not. If it is the first period, then set up in one or two blank pages the T accounts for all accounts listed in the chart of accounts with open balances in zero: 

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Mary Brown's Notes: Thank you very much for helping during my absence. I created a list of additional information that will help you out. If you need additional information in the preparation of the July 31 Financial Statement Bob can help. 1) No changes to Insurance, Rent, Depreciation for Trucks, Website and Computer equipment for the month of July 2023, as numbers from the June 30, statements. No additional inventory, assets, and equipment has been purchased for the month of July 2023. 2) I paid Bob and myself a dividend of $12,000.00; dividends were declared July 5 and payable July 20, 2023. 3) Bank statements from Bank of Montreal, and CIBC automatically withdraw and deposit all moneys, interest, interest earned and service charges at the end of the month. Bob can forward the email of these expenses when he receives them. 4) Income tax of $650.76 is payable on July 31, the tax rate for July to December is 10% of monthly pro?t. 5) BBRAC has pre-authorized payment with Shell Canada and PetroCanada with an email statement to the company email address Bob will forward these. 6) All Manufacturers Service Weekly Summary of activities which have their payment dates ? (7 days after Summary is sent) ? There are no parts on the summary since they will send the parts the next day because they are warranty claims and BBARC does not get charged for them 7') All BBARC customer weekly invoices are received (fully paid by the bank) the Saturday morning to the Cash Account. The BBARC weekly summaries from Sunday to Friday are paid Saturday Mornings (next day). 8) The salaries for both Bob and Mary are $800.00 per week and are paid every two weeks even when they are away on personal trips (last payment was on July 14":1 for the first 2 weeks of the month and the third week was accrued showing Wages Payable for $1,600.00). The Accounting Fee will be paid on August 2nd. 9) On July 28th Bob must repay $3X,000.00 of the Short Term Loan to the bank. The cash for the payment is obtained from the sale of Short Term Investments (Tbills). The X is the last digit of your student number, for instance if your student number ends with 7, the repayment of debt is $37,000. You can call me if you have any questions. Mary 

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PetroCanada To: BBARC Accounting Department From: PetroCanada Billing Department Date: July 31 PETRO CANADA Purchases of Gasoline payment Due July 31. The amount of $8X.89 will be taken out of BBARC Cash Accounts as per the Authorised payment. Date Charge July 31 $ 8X.89 Total $ 8X.89 Thank you for your payment. PetroCanada Note: $8X.89 requires you to replace the X with the last digit of your student number. 

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To: BBARC Accounting Department From: Shell Canada Date: July 28 Shell Purchases of Gasoline payment Due July 28. The amount of $412.00 will be taken out of BBARC Cash Accounts as per the Authorised payment. Date Charge July 22 $119.00 July 24 $134.00 July 28 $159.00 Total $412.00 Thank you for your payment. Shell Canada 

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To: BBARC Accounting Department From Bell Canada Billing Department Bell This is an email invoice
for BBARC Business Internet services for the month of July for $122.00. This is to confirm that the
amount will be taken out of your Cash Account on July 31 Thank you for your business.

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To: BBARC Accounting Department From: Rogers Billing Department 0 ROGERS This is an email invoice of cellphone services provided to BBARC'S operations for the month of July for $3X0.75. This is to con?rm that the amount Will be taken out of your Cash Account on July 31 Thank you for your business. Note: $3X0.75 requires you to replace the X with the last digit of your student number. 

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To: BBARC Accounting Department From: Canadian Imperial Bank of Commerce Date: July 31 CIBCO This is the amount of Service Charges for your Business Account 1478-1598-267 For the Month of July $141.25 bank service charges. Interest charges for the loan of $8X.97 will be taken out Cash Account. The amount has already been taken out of the Cash account listed in this email. Note: $8X.97 requires you to replace the X with the last digit of your student number. 

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Email Bills from Suppliers: To: BBARC Accounting Department From: Bank of Montreal Date: July 31 BMO Bank of Montreal This is the amount of Service Charges for your Business Account 1234-1234-258 For the Month of July $84.75 for services charges Earned $218.75 interest for the month of July. The amount has been either taken out or deposited to your Cash account. 

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BBARC Weekly Service Activity Summary July 15 - 21 Date of repair / Service # of Sales COGS Inventory Use of old Calls (total) purchased for this BBRAC service Inventory July 15 - 21 $2,415.00 $1,023.75 $972.56 $51.19 Receive Payment from July 22 bank Payment to Appliance $972.56 on July Suppliers 22 BBARC Weekly Service Activity Summary July 22 - 28 Date of repair / Service # of Sales COGS Inventory Use of old Calls (total) purchased for this BBRAC service Inventory July 22 - 28 8 $2,415.00 $1,023.75 $962.33 $61.43 Receive Payment from July 29 bank Payment to Appliance $962.33 on July Suppliers 29 BBARC Weekly Service Activity Summary July 29 - 31 Date of repair / Service # of Sales COGS Inventory Use of old Calls (total) purchased for this BBRAC service Inventory July 29 - 31 8 $2,760.00 $1,170.00 $1,111.50 $58.50 Receive Payment from August 1 bank Payment to Appliance $1,111.50 on Aug Suppliers 4 

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SAMSUNG Weekly Service Activity Ending 28-Jul Deposited on 04-Aug Date Service Call # Complete Charge 22 BBARC-609 yes $1X0.00 $1X0.00 22 BBARC-610 yes $75.00 $75.00 23 BBARC-611 yes $75.00 $75.00 23 BBARC-612 yes $75.00 $75.00 23 BBARC-613 yes $75.00 $75.00 23 BBARC-614 yes $75.00 $75.00 24 BBARC-615 yes $75.00 $75.00 24 BBARC-616 yes $75.00 $75.00 24 BBARC-617 yes $75.00 $75.00 24 BBARC-618 yes $1X0.00 $1X0.00 25 BBARC-619 yes $75.00 $75.00 25 BBARC-620 yes $75.00 $75.00 25 BBARC-621 yes $75.00 $75.00 25 BBARC-622 yes $1X0.00 $1X0.00 26 BBARC-623 yes $75.00 $75.00 26 BBARC-624 yes $75.00 $75.00 26 BBARC-625 yes $75.00 $75.00 SAMSUNG Weekly Service Activity Ending 31-Jul Deposited on 07-Aug Date Service Call # Complete Charge 29 BBARC-626 Yes $75.00 $75.00 29 BBARC-627 Yes $1X0.00 $1X0.00 30 BBARC-628 Yes $75.00 $75.00 30 BBARC-629 Yes $1X0.00 $1X0.00 Note: $1X0.00 requires you to replace the X with the last digit of your student number. 

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SAMSUNG Weekly Service Activity Ending 21-Jul Deposited on 28-Jul Date Service Call # Complete Charge 15 BBARC-594 yes $75.00 $75.00 15 BBARC-595 yes $75.00 $75.00 15 BBARC-596 yes $1X0.00 $1X0.00 16 BBARC-597 yes $75.00 $75.00 16 BBARC-598 yes $75.00 $75.00 16 BBARC-599 yes $75.00 $75.00 17 BBARC-600 yes $1X0.00 $1X0.00 17 BBARC-601 yes $75.00 $75.00 17 BBARC-602 yes $75.00 $75.00 17 BBARC-603 yes $75.00 $75.00 18 BBARC-604 yes $1X0.00 $1X0.00 18 BBARC-605 yes $75.00 $75.00 18 BBARC-606 yes $1X0.00 $1X0.00 19 BBARC-607 yes $75.00 $75.00 19 BBARC-608 yes $75.00 $75.00 Note: $1X0.00 requires you to replace the X with the last digit of your student number. 

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KitchenAid' Weekly Service Activity Ending 28-Jul Deposited on 04-Aug Date Service Call # Complete Charge 22 120-69 Yes $75.00 $75.00 22 120-70 Yes $1X0.00 $1X0.00 23 120-71 Yes $75.00 $75.00 27 120-72 Yes $75.00 $75.00 23 120-73 Yes $75.00 $75.00 24 120-74 Yes $1X0.00 $1X0.00 24 120-75 Yes $75.00 $75.00 24 120-76 Yes $75.00 $75.00 24 120-77 Yes $75.00 $75.00 25 120-78 Yes $75.00 $75.00 25 120-79 Yes $75.00 $75.00 25 120-80 Yes $1X0.00 $1X0.00 25 120-81 Yes $75.00 $75.00 26 120-82 Yes $75.00 $75.00 26 120-83 Yes $75.00 $75.00 26 120-84 Yes $75.00 $75.00 27 120-85 Yes $75.00 $75.00 KitchenAid Weekly Service Activity Ending 31-Jul Deposited on 07-Aug Date Service Call # Complete Charge 29 120-86 Yes $75.00 $75.00 29 120-87 Yes $75.00 $75.00 30 120-88 Yes $1X0.00 $1X0.00 30 120-89 Yes $75.00 $75.00 Note: $1X0.00 requires you to replace the X with the last digit of your student number. 

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KitChenAid... W'eekly Service Activity Ending 21?Jul Deposited on 28-Jul Date Service Call 11 Complete Charge total 16 120-51 YES $75.00 $75.00 16 120-52 YES $75.00 $75.00 17 120-53 YES $1X0.00 S1X0.00 17 120-54 YES $75.00 $75.00 17 120-55 YES $75.00 $75.00 18 120-56 YES $1X0.00 $1X0.00 18 120-57 YES $75.00 $75.00 18 120-58 YES $75.00 $75.00 18 120-59 YES $75.00 $75.00 18 120-60 YES $75.00 $75.00 19 120-61 YES $1X0.00 $1X0.00 19 120-62 YES $75.00 $75.00 19 120-63 YES $1X0.00 S1X0.00 20 120-64 YES $75.00 $75.00 20 120-65 YES $75.00 $75.00 20 120-66 YES $75.00 $75.00 21 120-67 YES $75.00 $75.00 21 120-68 YES $75.00 $75.00 Note: $1X0.00 requires you to replace the X with the last digit of your student number. 

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@LG Weekly Service Activity Ending 29-Jul Deposited on 04-Aug Date Service Call 4 Complete Rate Charge 23 12567 yes $75.00 $75.00 23 12589 yes $75.00 $75.00 23 12612E yes $1X0.00 $1X0.00 24 12629 yes $75.00 $75.00 24 12645 yes $75.00 $75.00 24 12649 yes $75.00 $75.00 24 12656E yes $1X0.00 $1X0.00 25 12659 yes $75.00 $75.00 25 12655 yes $75.00 $75.00 25 12673E yes $1X0.00 $1X0.00 26 12675 yes $75.00 $75.00 26 12689 yes $75.00 $75.00 26 12691 yes $75.00 $75.00 26 12695E yes $1X0.00 $1X0.00 27 12696 yes $75.00 $75.00 27 12703 yes $75.00 $75.00 © -_ G Weekly Service Activity Ending 31-Jul Deposited on 07-Aug Date Service Call 11 Complete Rate Charge 29 129567 yes $75.00 $75.00 30 12989 yes $75.00 $75.00 30 130612E yes $1X0.00 $1X0.00 Note: $1X0.00 requires you to replace the X with the last digit of your student number. 

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Appendix: Invoices and Mary's notes @LG Weekly Service Activity Ending 21-Jul Deposited on 28-Jul Date Service Call 11 Complete Rate Charge 17 12767 yes $75.00 $75.00 17 12789 yes $75.00 $75.00 17 12812E yes $1X0.00 $1X0.00 18 12829 yes $75.00 $75.00 18 12849 yes $75.00 $75.00 18 12856E yes $1X0.00 $1X0.00 18 12859 yes $75.00 $75.00 18 12864 yes $75.00 $75.00 19 12869 yes $75.00 $75.00 19 12873E yes $1X0.00 $1X0.00 19 12889 yes $75.00 $75.00 19 12896 yes $75.00 $75.00 20 12903 yes $75.00 $75.00 Note: $1X0.00 requires you to replace the X with the last digit of your student number. 

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Sample General Journal (assuming the last digit of your student number is 0) Date Order Account Type of Dr Cr Account June 30 44 Revenue Revenue 27315.00 Other Revenue Interest Revenue 218.75 Income Summary Temp 5856.85 Cost of goods sold Expense 6533.75 Bank Service Expense Expense 205.54 Office Supplies Expense Expense 154.00 Interest Expense Expense 48.97 Internet Expense Expense 122.00 Insurance Expense Expense 650.00 Wage Expense Expense 7040.00 Gas Expense Expense 1430.00 Depreciation expense Truck Expense 1583.33 Depreciation expense Computer Expense 347.22 Depreciation expense - Website Expense 108.33 Rent Expense Expense 2500.00 Phone Expense Expense 303.00 Income Tax expense Expense 650.76 Explanation: closing of temporary accounts to determine Net Income for the month of June 2023 June 30 Dividends OE 0.00 Dividends Payable Liability 0.00 Explanation: no dividends were declared or paid in June June 30 45 Income summary Temp 5856.85 Retained Earnings OE 5856.85 Explanation: determine the ending balance of RE Last week of the Month of July 2023 - Examples Date order Account Type of Dr Cr Account 22 Jul Accounts Payable Appliance Supplies Liability 972.56 Cash Asset 972.56 Explanation: pay the inventory purchased July 15 to 21 28 July Cash Asset 1,050.00 Accounts Receivable LG Asset 1,050.00 Explanation: sales ending July 21st collected on July 28th 31 July Accounts Receivables LG Asset 1550.00 Revenue Revenue 1550.00 Explanation: sales between July 23 d to 3 1 st 

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Financial Statements: Trail Balance as of July 21,2023 Bob Brown Appliance Repair Company Ltd Income Statement For the period july 1St to 21St 2023 Account Debit balance Credit Balance Revenue $17,680.36 + 1X0 times 11 Other Revenue Interest (bank) $ - Cost of Goods Sold 4,721.61 Accounting Fees Gas Expenses Interest Expense Insurance Expense Wage Expense Phone Expense Internet Expense Rent Expense Depreciation expense Website Depreciation expense Computers Depreciation expense Truck Of?ce Supplies Expense Bank Service Expenses Income Tax Expense (10%) Dividends Cash 986.78 4,800.00 12,000.00 12,366.75 Short Term Investments (Tbills) 75,000.00 Accounts Receivable Customers 2,415.00 Accounts Receivable LG 35 750 + $1X0 times 3 Accounts Receivable Kitchen Aid $1,050 + $1X0 times 4 Accounts Receivable Samsung $ 825 + $1X0 times 4 Inventory 3,399.65 Prepaid Insurance 7,800.00 Prepaid Rent 22,000.00 Truck 95,000.00 Accumulated Depreciation Truck $ 23,750.00 Computers $ 12,500.00 Accumulated Depreciation Computers '5 4,861.11 Website $ 6,500.00 Accumulated Depreciation Website Accounts Payable Appliance Supplies Wages Payable Short Term Loan payable Income Tax Payable - end of next month Share Capital Bob Brown Retained Earnings Totals $ Note: Totals are $262,114.79 + 1X0 times 11, where X is the last digit of your student number 99399969999999396999399999999999999999 $ $ $ $ 2,600.00 972.56 1,600.00 58,000.00 650.76 50,000.00 102,000.00 6666(79'6659999969 

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Bob Brown Appliance Repair Company Ltd. Statement of Financial Position $135,511.93 lune 30th 2023 ASSETS: Current Assets: Cash $16,062.30 Short Term Investments (Tbills) $75,000.00 Accounts Receivable Customers $5,437.50 Accounts Receivable LG $956.00 Accounts Receivable Samsung $1,523.23 Accounts Receivable Kitchen Aid $1,403.71 Inventory $5,329.19 Prepaid Insurance $7,800.00 Prepaid Rent $22,000.00 Total Current Assets Capital Assets: Truck $95,000.00 Less: Accumulated Depreciation $23,750.00 $71,250.00 Computes $12,500.00 Less: Accumulated Depreciation $ 4,861.11 $ 7,638.89 Website $ 6,500.00 Less: Accumulated Depreciation $ 2,600.00 $ 3,900.00 Total Capital Assets $ 82,788.89 Total All Assets $218,300.82 Liabilities Accounts Payable Appliance Supplies $ 4,450.06 Wages Payable $ 3,200.00 Short Term Loan payable $58,000.00 Income Tax Payable ? end of next month $ 650.76 Total Liabilities $66,300.82 Shareholder's Equity Share Capital Bob Brown $50,000.00 Retained Earnings $102,000.00 Total Shareholder's Equity Total Liabilities & Shareholder's Equity $152,000.00 $218,300.82 

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Financial Statements: Income Statement Bob Brown Appliance Repair Company Ltd For the month lune 30 2023 Revenue $27,315.00 Other Revenue Interest (bank) $218.75 Total revenue $27,533.75 Expenses Cost of Goods Sold $6,533.75 Gas Expenses $1,430.00 Interest Expense $48.97 Insurance Expense $650.00 Wage Expense $7,040.00 Phone Expense $303.00 Internet Expense $122.00 Rent Expense $2,500.00 Of?ce Supplies Expense $154.00 Bank Service Expense $205.54 Depreciation Expenses: Website $108.33 Computers $347.22 Truck $1,583.33 Total Depreciation Expense $2,038.88 Total Expenses $21,026.14 Income Before Income Taxes $6,507.61 Income Tax Expense (10%) End of Month $650.76 Net Income (after income taxes) $5,856.85 Bob Brown Appliance Repair Company Ltd Statement of Retained Earnings lune 30th 2023 Retained Earnings, June 1St 2023 $96,143.15 plus: Net Income $5,856.85 less: Dividends $0.00 Retained Earnings, June 30tll 2023 $102,000.00 

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When providing the answers in the eClass quiz, only type numbers and a dot or period to separate
decimals. Typing any other character such as "$" "96" "," will transform your answer into an
alphanumeric chain that eClass cannot read and cannot grade. If the balance of Cash is "2... 

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from Saturday July 22 and creating all the statements for the end of July. These will include Journal entries, updating of T accounts, adjusting journal entries, create a Trail Balance as of July 31 before and after adjusting journal entries, and then conclude your work by preparing the Income Statement, Statement of Retained Earnings and Statement of Financial Position for July 31 after adjustments. Required: Prepare the accounting records for Bob Brown Appliance Repair Company Note: this task is based on the analysis of very extensive narrative and detailed project documents. The next pages have all the documents you received between Saturday July 22'1d and Monday July 313*, both days included so you can prepare the financial statements of BBARC (use 2 decimal places, if needed round up the ?gures to the next cent). Some of the amounts depend on the last digit of your student number. When a number is presented as $XOI}, $3X0 and $2,XIO if your last digit is 7, your term project must consider these amounts as $700, $370 and $2,710. Read all details with care. STEP 1: Prepare the Financial Statements by doing the following (you decide on the order to follow: 1. Check and use the Chart of Accounts provided (do not create new accounts). 2. Prepare the General Journal entries for the days between July 22Eld and 31"t (all journal entries including A] E). Prepare Closing Entries for the month of July to continue with business in the month of August as the next period. 3. Post all transactions to the T-accounts and prepare a trial balance showing the balance of each of these accounts for the month of July (end of Month), 4. Prepare the Financial Statements in good form for the month of July: Income Statement, Statement of Owners Equity (Retained Earnings), and Statement of Financial Position (Balance Sheet). Cash flow statement is not required. STEP 2: Analyze the ?nancial statements and answer the following questions: 1. Make one clear suggestions of how the business can improve its after tax net income 2. With the data of the ?nancial statements that you have completed, is the business viable? Explain why, based on the results reported in the ?nancial statements you prepared, you think this is a business with future for their owners. STEP 3: Do the assignments (eClass Quiz) where you type (?ll in the blanks) the amounts reported in the ?nancial statements, provide answers to step 2 questions and upload a ?le with only the speci?c document required (T account of cash, journal entries between July 22"'1 and July 315t without AJE, AJE for the month of July, Income Statement of July, or Statement of Financial Position as of July 31"). 

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BBARC has regular customers that call and send messages from the Website, they pay with Debit or with Credit cards for the service call, and they are billed for parts used (these are not covered by manufacturer' 5 warranties). The bank deposits the amounts of all these services into BBARC bank Cash account at the end of the week (on Saturdays). BBARC has a small inventory of older parts that are still being used. BBARC wants to bring it down to almost zero because appliances are getting more electronic, and the older parts are becoming obsolete. Bob gets new supplies and parts from a third?party appliance supplier and has a corporate account, the supplier emails BBARC at the end of the week the amount owing, and Mary does an electronic transfer before the next business day of the full amount owing. These are the cost of goods for these customers' business. As you can see Bob can be very busy sometimes working over 14 -lS hours some days. When the business started Bob and Mary asked you to help create their manual accounting system, answer questions from time to time and do their Year End and taxes for the business. The accounting system is simple, and very basic, recording Journal entries, use of T accounts, creating Trail Balances, Income Statement, and at the end of each month a Balance Sheet (year to date). Mary has a policy of whenever possible having an Accounts Payable balance of zero at the end of the month except for wages payable every two weeks. She likes to pay the bills before their due dates, many times in the last week of the month. Bob and Mary take out a very small salary of $800.00 each per week (every weekday Bob earns $160 and Mary another $160, there are no wages accrued during weekend days ? wages expense for June were $7,040 because there were 22 weekdays in the month). At the end of the calendar year once the ending balance of Retained Earnings has been set, Bob and Mary have up to 12 months to declare and pay dividends to themselves. The emergency (Problem ? opportunity) Mary' s sister had their first baby and wanted to go to Vancouver the following week to help her. Since you work from home and live next-door, Mary asked if you could just do the books part time for the last week of the month when she is in Vancouver. BBARC will pay you an accounting fee of $600.00 for your work. You agreed to work between July 22nd and 31St until Mary gets back. Mary has completed all journal entries for the ?rst three weeks of July and supplied you with a list of accruals, and payments that must be made for the end of July. Since you are very familiar with the accounts and the set-up, Mary believes you can handle all the monthly adjusting journal entries. Bob will make all the deposits received and will sign all the cheques and make all electronic payments that must be made during Mary's absence. For the work that Bob does for each manufacturer, after each completed repair an invoice is automatically generated, Bob gets a weekly summary of all the work completed and gets payment seven days later by electronic funds transfer from each of the manufacturers. You are given a copy of both Income Statement and Statement of Financial Position as of June 30, 2023, and the trial balance from July 1 to July 21, 2023 (so journal entries are up to date, as well as T account postings). You are responsible for updating the books 

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Accompanying material for the ebook Introduction to Financial Accounting in the 21St Century ? Gaber 8; Porporato, 5":l Edition McGrawHill Term Project: Part II Bookkeeping for' a small business organization Case: Bob Brown Appliance Repair Company July 2023 Bob Brown owns Bob Brown Appliance Repair Company (BBARC) which has been in business over the past five years in the Greater Toronto Area (GTA). The business is very success?ll, Mary (Bob's wife) is the accountant, she pays the bills, works with the manufacturers, receives shipments of warranty and other parts from manufacturers, answers Web Site inquires for services calls and helps with the business wherever possible, but she cannot do repairs. Business: Over eighty percent of the business is servicing manufacturer's warranties for LG, Samsung, and Kitchen Aid. During the day, Mary gets emails from these manufactures of the service calls for the next day, with a brief description of the problem and then places these calls into a route around the city so that Bob doesn't have to drive all over the city for the repairs for the day, this is to keep costs down and be able to do more service calls. The summer months are the busiest months for repairs since the full?time service staff that work for the Manufacturers take their vacations. First thing in the morning Mary calls the customers to make sure that they will be home in the four-hour window for Bob to fix their appliances. When warranty work is completed for each manufacturer's customer the material used and labour is recorded on the laptop in the truck after each call to the manufacturer thus closing the repair, and this information is added to the ongoing weekly bill that will be paid to BBARC the following Friday (next week) for this work completed. Parts and supplies used for these service calls are delivered directly to BBARC the next day to replenish the manufacturers inventory that BBARC has on hand for their service calls mote that this is manufacturers consignment inventory, BBARC only gets paid for the service call). During the day Bob can get calls directly from the manufacturer for emergency repairs which must be complete by the end of the day, and of course gets a premium (bonus of $1X0.00 per call, where X is equal to your last digit of your student number ? if your student number end in "2" then the premium is $120.00) for these repairs.

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