Parts a) & b) are completed. Please solve Parts e) & f)

Melissa Young had always been encouraged by her accounting professor to apply her accounting skills as much as possible. When her uncle asked her to prepare his accounting records for a company he owns, called Bob's Repairs Ltd., she readily agreed.

The company has two employees who repair and service all computers used by four large companies in the area.

Following are dated August 31, 2018

1.When the corporation was formed on September 1, 2017, common shares were sold to the sole shareholder, Uncle Bob, for $10,000 cash.

2.Uncle Bob added up all of the invoices the company issued to its customers and the total came to $229,400. All of these were issued on credit.

3.The company received $190,000 cash from customers when they paid their invoices.

4.The company rents a small repair shop for $3,500 per month. The shop was rented for the full year and all rent was paid in cash. In addition, the landlord required the company to pay one month's rent in advance.

5.Salaries to employees totalled $120,000 for the year and were paid in cash.

6.Uncle Bob determined from a review of numerous invoices that the office expenses for the year were $36,400. Of these, all were paid except $4,000 that was still owing.

7.In late August, a new customer approached the company and signed a contract for service to be done to its computers starting in October 2018. The customer paid the company $2,000 in advance to secure the service.

8.Uncle Bob estimated that, given the net income earned by the company this year, income tax

expense should be $6,200 but this would not have to be paid for another two months.

9.The company declared and paid $1,000 of dividends to shareholders at the end of the year.

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a) Prepare an equation analysis of the effects of the above transactions on the expanded accounting equation.

b) Prepare an income statement, statement of changes in equity, and statement of financial position for the year.

e) If the income taxes were due next week, would the company be able to pay them? (2 points)

(f) Why does the company have to pay income tax? Should Uncle Bob personally pay tax on any of the net income earned by the company? (4 points)

e) If the income taxes were due next week, would the company be able to pay them? (2 points)

(f) Why does the company have to pay income tax? Should Uncle Bob personally pay tax on any of the net income earned by the company? (4 points)

please solve parts e) & f)

Assets Liabilities Shareholders' Equity Retained Earnings Cash AR Pre Rent A/P Unearned Revenue Common Shares Revenue Dividends 10,000 10,000 S 229.400 S 229,400 3 $ 190,000 S (190 000) 4 $(42,000) 5 $(120,000) 6 (32,400) 7 S 3,500 38,500 S 120,000 36,400 1,000 2,000 2.000 6200 6,200 1,000) 1,000 37,300 $ 1,000 6,600 S 39.400S 3,500 10,200S 12 200 2.000 10,000 S 229400 (201,100) $ Total 49 500 49 500 Assets Liabilities Shareholders' Equity Retained Earnings Cash AR Pre Rent A/P Unearned Revenue Common Shares Revenue Dividends 10,000 10,000 S 229.400 S 229,400 3 $ 190,000 S (190 000) 4 $(42,000) 5 $(120,000) 6 (32,400) 7 S 3,500 38,500 S 120,000 36,400 1,000 2,000 2.000 6200 6,200 1,000) 1,000 37,300 $ 1,000 6,600 S 39.400S 3,500 10,200S 12 200 2.000 10,000 S 229400 (201,100) $ Total 49 500 49 500