In the second week of BUS 285, you learned about the accounting information system and need to analyze the transactions which Economy Small Engine Repair entered into to determine if they affect the accounting equation. After doing so, you know that it is necessary to Journalize the transactions that affect the accounting equation and prepare a trial balance. The following are the transactions Economy Small Engine Repair (ESER) entered into from September 1 to December 31, 2016: . . On September 1, Bob invested $5,000 of his savings in ESER in return for common shares. Bob's sister was interested in helping get him started so on September 9, she invested $3,000 in Economy Small Engine Repair in return for common shares. Also on September 9, Bob purchased and paid $2,500 for the computer equipment necessary to run ESER. The supplier of the computer equipment advised you can expect to use it for 5 years before it will require replacement. On September 11, you purchased repair equipment including work benches, shelving, various specialty tools and the analyzer you were trying to decide how to account for last week. The total cost of the equipment (not including the analyzer) was $4,750 and payment was due October 15. On September 12. you purchased the inventory (parts, oils and cleaners, etc.) necessary to make engine repairs. As ESER is a new business, none of the parts supply businesses would extend credit. Therefore, you had to pay the $2,500 at the time you picked up the inventory items. On October 1, you borrowed $5,000 from the Royal Bank. The loan is to be repaid on October 1, 2017. Interest is charged on the outstanding balance at a rate of 4% per year and is due on the last day of every month. On October 14, you paid $250 to have posters printed advertising ESER's products. On October 15, you paid the amount due for the purchase of the repair equipment from September 11 On November 27, Bob hired a friend to help with the busy early winter snow blower season. His friend started work on December 7. On December 31, Bob paid his friend $900 for the hours worked in December. Total cash sales for September to December 31 were $14,900. Economy Small Engine Repair also provided repairs to a couple of commercial accounts that he had managed to obtain. These sales totaled $2,900 and although they have been biled, payment was not received until January 2017 On December 31, you received a cheque for $750. The cheque was a payment for repairs of a commercial client. A note attached to the cheque stated that the business thought it . . . . would make payment earlier than the January 2016 due date as the owner remembers how difficult the first few months of running a new business can be Tasks 1. You decided to journalize the transactions described above (in good form). You remember your instructor telling you that means the journal entries must be dated, properly formatted and must include a brief explanation for each transaction. If a transaction did not affect the accounting equation and should not be journalized as a result, you decided to note that no journal entry was necessary as a reminder to yourself. 2. After journalizing the transactions for September 1 to December 31, 2016, you then decided to post the transactions to accounts. 3. Lastly, using the account balances determined in task 2. you sat down to prepare the December 31, 2016 trial balance. BUS 285 - Lab 2 Part 2 Summer 2020 It is December 31, 2016 and Bob wants to know how well this is going and at this point he has more or less hired you to do his books and statements. In BUS 285, your instructor advised that a business can choose to have its year end at any point during the year. However, you also remember your instructor commenting that filing a corporate tax return is more straightforward if a business has a December 31 yearend. Since you have not yet taken BUS 384 Introduction to Taxation for Business Decisions, you decided to tell Bob that Economy Small Engine Repair (ESER) should have a December 31 yearend and he agrees. Since he incorporated ESER and started business on September 1, 2016, the first set of financial statements will be prepared for a 4-month period. After journalizing the transactions that occurred between September 1 and December 31, 2016. you prepared the following unadjusted trial balance as at December 31, 2016: Economy Small Engine Repair Ltd. Unadjusted Trial Balance December 31, 2016 19 I Account Name Dr. Cash $14,950 Accounts receivable 2,150 Inventory 2.500 Repair equipment 4,750 Computer equipment 2,500 Accounts payable $0 Bank loan payable 5,000 Common shares Revenue 17,800 Parts expense 2,800 Advertising expense 250 Salaries expense 900 $30.800 $30,800 You also gathered the following additional Information: 8.000 In your files, you came across ESER's Insurance policy. The $1,200 premium was paid on September 9. The policy provides insurance protection from September 1, 2016 to August 31, 2017. You forgot to record the payment of the premium. Also in your files, you found the invoice for the purchase of an adjustable height table on September 14. The table allows you to place a lawn mower or snow blower on it and adjust the working height so that you are more comfortable and don't injure your back. You paid the $1,250 cost as soon as the table was delivered. Similar to the amount paid for the insurance policy, you forgot to record the purchase. . . After talking to his cousin who owns Jake's Tool Repair, you estimated that the equipment purchased on September 11 as well as the adjustable table will last 8 years. You also remembered that the supplier of the computer equipment purchased on September 9 advised you could expect to use it for 5 years before it will require replacement. You decided that you will record a full month of depreciation if an asset is used at any time during the month. On December 31, you received a $500 down payment from a client on a major overhaul of three machines to be done in 2017. Also on December 31, you paid the interest owing on the bank loan payable. Although the bank originally required interest be paid on the last day of every month, it later agreed to allow the first interest payment to be made on December 31. Late in the day on December 31, you received a phone call from a client. It was snowing and the client needed his snow blower fixed so he could clear his walks for a New Year's Eve function. You finished the order just in time to get it to the client for dinner. The client will pay $450 for the work in January 2017. After you completed the New Year's Eve emergency repair, you counted the inventory of parts, oils etc. The inventory remaining totaled $750. Before you finished preparing and posting the adjusting entries, you received the utility bills for the period from September to December 2016. The business portion of the utility bills totaled $235 and will be paid in January 2017 Based on the profit before income tax for the period ended December 31, 2016, you expect to pay Canada Revenue Agency $3,500 in corporate income tax . Tasks 1. You decided to prepare the adjusting entries in good form) required due to the additional Information provided above. 2. After preparing the adjusting entries, you then decided to post the adjustments to T accounts 3. Lastly, using the account balances determined in task 2. you sat down to prepare the December 31, 2016 adjusted trial balance BUS 285 - Lab 2 Part 1 Summer 2020 In the second week of BUS 285, you learned about the accounting information system and need to analyze the transactions which Economy Small Engine Repair entered into to determine if they affect the accounting equation. After doing so, you know that it is necessary to journalize the transactions that affect the accounting equation and prepare a trial balance. The following are the transactions Economy Small Engine Repair (ESER) entered into from September 1 to December 31, 2016: On September 1, Bob invested $5,000 of his savings in ESER in return for common shares. Bob's sister was interested in helping get him started so on September 9, she invested $3,000 in Economy Small Engine Repair in return for common shares. Also on September 9, Bob purchased and paid $2,500 for the computer equipment necessary to run ESER. The supplier of the computer equipment advised you can expect to use it for 5 years before it will require replacement. On September 11, you purchased repair equipment including work benches, shelving. various specialty tools and the analyzer you were trying to decide how to account for last week. The total cost of the equipment (not including the analyzer) was $4,750 and payment was due October 15. On September 12, you purchased the inventory (parts, oils and cleaners, etc.) necessary to make engine repairs. As ESER is a new business, none of the parts supply businesses would extend credit. Therefore, you had to pay the $2,500 at the time you picked up the inventory items. On October 1, you borrowed $5,000 from the Royal Bank. The loan is to be repaid on October 1, 2017. Interest is charged on the outstanding balance at a rate of 4% per year and is due on the last day of every month. On October 14, you paid $250 to have posters printed advertising Eser's products. On October 15, you paid the amount due for the purchase of the repair equipment from September 11. On November 27, Bob hired a friend to help with the busy early winter snow blower season. His friend started work on December 7. On December 31, Bob paid his friend $900 for the hours worked in December. Total cash sales for September to December 31 were $14,900. Economy Small Engine Repair also provided repairs to a couple of commercial accounts that he had managed to obtain. These sales totaled $2,900 and although they have been billed, payment was not received until January 2017. On December 31, you received a cheque for $750. The cheque was a payment for repairs of a commercial client. A note attached to the cheque stated that the business thought it . would make payment earlier than the January 2016 due date as the owner remembers how difficult the first few months of running a new business can be. Tasks 1. You decided to journalize the transactions described above (in good form). You remember your instructor telling you that means the journal entries must be dated, properly formatted and must include a brief explanation for each transaction. If a transaction did not affect the accounting equation and should not be journalized as a result, you decided to note that no journal entry was necessary as a reminder to yourself. 2. After journalizing the transactions for September 1 to December 31, 2016, you then decided to post the transactions to Taccounts. 3. Lastly, using the account balances determined in task 2, you sat down to prepare the December 31, 2016 trial balance. BUS 285 - Lab 2 Part 2 Summer 2020 It is December 31, 2016 and Bob wants to know how well this is going and at this point he has more or less hired you to do his books and statements. In BUS 285, your instructor advised that a business can choose to have its year end at any point during the year. However, you also remember your instructor commenting that filing a corporate tax return is more straightforward if a business has a December 31 yearend. Since you have not yet taken BUS 384 Introduction to Taxation for Business Decisions, you decided to tell Bob that Economy Small Engine Repair (ESER) should have a December 31 yearend and he agrees. Since he incorporated ESER and started business on September 1, 2016, the first set of financial statements will be prepared for a 4-month period. After journalizing the transactions that occurred between September 1 and December 31, 2016, you prepared the following unadjusted trial balance as at December 31, 2016: Economy Small Engine Repair Ltd. Unadjusted Trial Balance December 31, 2016 Account Name Cash $14,950 Accounts receivable 2,150 Inventory 2,500 Repair equipment 4,750 Computer equipment 2,500 Accounts payable $0 Bank loan payable 5,000 Common shares 8,000 Revenue 17,800 Parts expense 2,800 Advertising expense 250 Salaries expense 900 $30,800 $30,800 You also gathered the following additional information: In your files, you came across ESER's insurance policy. The $1,200 premium was paid on September 9. The policy provides insurance protection from September 1, 2016 to August 31, 2017. You forgot to record the payment of the premium. Also in your files, you found the invoice for the purchase of an adjustable height table on September 14. The table allows you to place a lawn mower or snow blower on it and adjust the working height so that you are more comfortable and don't injure your back. You paid the $1,250 cost as soon as the table was delivered. Similar to the amount paid for the insurance policy, you forgot to record the purchase. After talking to his cousin who owns Jake's Tool Repair, you estimated that the equipment purchased on September 11 as well as the adjustable table will last 8 years. You also remembered that the supplier of the computer equipment purchased on September 9 advised you could expect to use it for 5 years before it will require replacement. You decided that you will record a full month of depreciation if an asset is used at any time during the month. On December 31, you received a $500 down payment from a client on a major overhaul of three machines to be done in 2017. Also on December 31, you paid the interest owing on the bank loan payable. Although the bank originally required interest be paid on the last day of every month, it later agreed to allow the first interest payment to be made on December 31. Late in the day on December 31, you received a phone call from a client. It was snowing and the client needed his snow blower fixed so he could clear his walks for a New Year's Eve function. You finished the order just in time to get it to the client for dinner. The client will pay $450 for the work in January 2017. After you completed the New Year's Eve emergency repair, you counted the inventory of parts, oils etc. The inventory remaining totaled $750. Before you finished preparing and posting the adjusting entries, you received the utility bills for the period from September to December 2016. The business portion of the utility bills totaled $235 and will be paid in January 2017. Based on the profit before income tax for the period ended December 31, 2016, you expect to pay Canada Revenue Agency $3,500 in corporate income tax. Tasks 1. You decided to prepare the adjusting entries (in good form) required due to the additional information provided above. 2. After preparing the adjusting entries, you then decided to post the adjustments to T accounts. 3. Lastly, using the account balances determined in task 2, you sat down to prepare the December 31, 2016 adjusted trial balance. BUS 285 - Lab 2 Part 1 Summer 2020 In the second week of BUS 285, you learned about the accounting information system and need to analyze the transactions which Economy Small Engine Repair entered into to determine if they affect the accounting equation. After doing so, you know that it is necessary to journalize the transactions that affect the accounting equation and prepare a trial balance. . The following are the transactions Economy Small Engine Repair (ESER) entered into from September 1 to December 31, 2016: On September 1, Bob invested $5,000 of his savings in ESER in return for common shares. Bob's sister was interested in helping get him started so on September 9, she invested $3,000 in Economy Small Engine Repair in return for common shares. Also on September 9, Bob purchased and paid $2,500 for the computer equipment necessary to run ESER. The supplier of the computer equipment advised you can expect to use it for 5 years before it will require replacement. On September 11, you purchased repair equipment including work benches, shelving, various specialty tools and the analyzer you were trying to decide how to account for last week. The total cost of the equipment (not including the analyzer) was $4,750 and payment was due October 15. On September 12, you purchased the inventory (parts, oils and cleaners, etc.) necessary to make engine repairs. As ESER is a new business, none of the parts supply businesses would extend credit. Therefore, you had to pay the $2,500 at the time you picked up the Inventory items. On October 1, you borrowed $5,000 from the Royal Bank. The loan is to be repaid on October 1, 2017. Interest is charged on the outstanding balance at a rate of 4% per year and is due on the last day of every month. On October 14, you paid $250 to have posters printed advertising ESER's products. On October 15, you paid the amount due for the purchase of the repair equipment from September 11 On November 27, Bob hired a friend to help with the busy early winter snow blower season. His friend started work on December 7. On December 31, Bob paid his friend 9900 for the hours worked in December Total cash sales for September to December 31 were $14,900. Economy Small Engine Repair also provided repairs to a couple of commercial accounts that he had managed to obtain. These sales totaled $2,900 and although they have been billed, payment was not received until January 2017 On December 31, you received a cheque for $750. The cheque was a payment for repairs of a commercial dient. A note attached to the cheque stated that the business thought it . would make payment earlier than the January 2016 due date as the owner remembers how difficult the first few months of running a new business can be. Tasks 1. You decided to journalize the transactions described above (in good form). You remember your instructor telling you that means the journal entries must be dated, properly formatted and must include a brief explanation for each transaction. If a transaction did not affect the accounting equation and should not be journalized as a result, you decided to note that no journal entry was necessary as a reminder to yourself. 2. After journalizing the transactions for September 1 to December 31, 2016, you then decided to post the transactions to T accounts. 3. Lastly, using the account balances determined in task 2, you sat down to prepare the December 31, 2016 trial balance. BUS 285 - Lab 2 Part 2 Summer 2020 It is December 31, 2016 and Bob wants to know how well this is going and at this point he has more or less hired you to do his books and statements. In BUS 285, your instructor advised that a business can choose to have its year end at any point during the year. However, you also remember your instructor commenting that filing a corporate tax return is more straightforward if a business has a December 31 yearend. Since you have not yet taken BUS 384 Introduction to Taxation for Business Decisions, you decided to tell Bob that Economy Small Engine Repair (ESER) should have a December 31 yearend and he agrees. Since he incorporated ESER and started business on September 1, 2016, the first set of financial statements will be prepared for a 4-month period. After journalizing the transactions that occurred between September 1 and December 31, 2016, you prepared the following unadjusted trial balance as at December 31, 2016: Economy Small Engine Repair Ltd. Unadjusted Trial Balance December 31, 2016 Cr. Dr. $14,950 2,150 2,500 4,750 2,500 Account Name Cash Accounts receivable Inventory Repair equipment Computer equipment Accounts payable Bank loan payable Common shares Revenue Parts expense Advertising expense Salaries expense $0 5,000 8,000 17,800 2,800 250 900 $30,800 $30,800 You also gathered the following additional information: In your files, you came across ESER's insurance policy. The $1,200 premium was paid on September 9. The policy provides insurance protection from September 1, 2016 to August 31, 2017. You forgot to record the payment of the premium. . Also in your files, you found the invoice for the purchase of an adjustable height table on September 14. The table allows you to place a lawn mower or snow blower on it and adjust the working height so that you are more comfortable and don't injure your back. You paid the $1,250 cost as soon as the table was delivered. Similar to the amount paid for the insurance policy, you forgot to record the purchase. After talking to his cousin who owns Jake's Tool Repair, you estimated that the equipment purchased on September 11 as well as the adjustable table will last 8 years. You also remembered that the supplier of the computer equipment purchased on September 9 advised you could expect to use it for 5 years before it will require replacement. You decided that you will record a full month of depreciation if an asset is used at any time during the month. On December 31, you received a $500 down payment from a client on a major overhaul of three machines to be done in 2017. Also on December 31, you paid the interest owing on the bank loan payable. Although the bank originally required interest be paid on the last day of every month, it later agreed to allow the first interest payment to be made on December 31. Late in the day on December 31, you received a phone call from a client. It was snowing and the client needed his snow blower fixed so he could clear his walks for a New Year's Eve function. You finished the order just in time to get it to the client for dinner. The client will pay $450 for the work in January 2017. After you completed the New Year's Eve emergency repair, you counted the inventory of parts, oils etc. The inventory remaining totaled $750. Before you finished preparing and posting the adjusting entries, you received the utility bills for the period from September to December 2016. The business portion of the utility bills totaled $235 and will be paid in January 2017 Based on the profit before income tax for the period ended December 31, 2016, you expect to pay Canada Revenue Agency $3,500 in corporate income tax. Tasks 1. You decided to prepare the adjusting entries (in good form) required due to the additional information provided above. 2. After preparing the adjusting entries, you then decided to post the adjustments to accounts. 3. Lastly, using the account balances determined in task 2, you sat down to prepare the December 31, 2016 adjusted trial balance. In the second week of BUS 285, you learned about the accounting information system and need to analyze the transactions which Economy Small Engine Repair entered into to determine if they affect the accounting equation. After doing so, you know that it is necessary to Journalize the transactions that affect the accounting equation and prepare a trial balance. The following are the transactions Economy Small Engine Repair (ESER) entered into from September 1 to December 31, 2016: . . On September 1, Bob invested $5,000 of his savings in ESER in return for common shares. Bob's sister was interested in helping get him started so on September 9, she invested $3,000 in Economy Small Engine Repair in return for common shares. Also on September 9, Bob purchased and paid $2,500 for the computer equipment necessary to run ESER. The supplier of the computer equipment advised you can expect to use it for 5 years before it will require replacement. On September 11, you purchased repair equipment including work benches, shelving, various specialty tools and the analyzer you were trying to decide how to account for last week. The total cost of the equipment (not including the analyzer) was $4,750 and payment was due October 15. On September 12. you purchased the inventory (parts, oils and cleaners, etc.) necessary to make engine repairs. As ESER is a new business, none of the parts supply businesses would extend credit. Therefore, you had to pay the $2,500 at the time you picked up the inventory items. On October 1, you borrowed $5,000 from the Royal Bank. The loan is to be repaid on October 1, 2017. Interest is charged on the outstanding balance at a rate of 4% per year and is due on the last day of every month. On October 14, you paid $250 to have posters printed advertising ESER's products. On October 15, you paid the amount due for the purchase of the repair equipment from September 11 On November 27, Bob hired a friend to help with the busy early winter snow blower season. His friend started work on December 7. On December 31, Bob paid his friend $900 for the hours worked in December. Total cash sales for September to December 31 were $14,900. Economy Small Engine Repair also provided repairs to a couple of commercial accounts that he had managed to obtain. These sales totaled $2,900 and although they have been biled, payment was not received until January 2017 On December 31, you received a cheque for $750. The cheque was a payment for repairs of a commercial client. A note attached to the cheque stated that the business thought it . . . . would make payment earlier than the January 2016 due date as the owner remembers how difficult the first few months of running a new business can be Tasks 1. You decided to journalize the transactions described above (in good form). You remember your instructor telling you that means the journal entries must be dated, properly formatted and must include a brief explanation for each transaction. If a transaction did not affect the accounting equation and should not be journalized as a result, you decided to note that no journal entry was necessary as a reminder to yourself. 2. After journalizing the transactions for September 1 to December 31, 2016, you then decided to post the transactions to accounts. 3. Lastly, using the account balances determined in task 2. you sat down to prepare the December 31, 2016 trial balance. BUS 285 - Lab 2 Part 2 Summer 2020 It is December 31, 2016 and Bob wants to know how well this is going and at this point he has more or less hired you to do his books and statements. In BUS 285, your instructor advised that a business can choose to have its year end at any point during the year. However, you also remember your instructor commenting that filing a corporate tax return is more straightforward if a business has a December 31 yearend. Since you have not yet taken BUS 384 Introduction to Taxation for Business Decisions, you decided to tell Bob that Economy Small Engine Repair (ESER) should have a December 31 yearend and he agrees. Since he incorporated ESER and started business on September 1, 2016, the first set of financial statements will be prepared for a 4-month period. After journalizing the transactions that occurred between September 1 and December 31, 2016. you prepared the following unadjusted trial balance as at December 31, 2016: Economy Small Engine Repair Ltd. Unadjusted Trial Balance December 31, 2016 19 I Account Name Dr. Cash $14,950 Accounts receivable 2,150 Inventory 2.500 Repair equipment 4,750 Computer equipment 2,500 Accounts payable $0 Bank loan payable 5,000 Common shares Revenue 17,800 Parts expense 2,800 Advertising expense 250 Salaries expense 900 $30.800 $30,800 You also gathered the following additional Information: 8.000 In your files, you came across ESER's Insurance policy. The $1,200 premium was paid on September 9. The policy provides insurance protection from September 1, 2016 to August 31, 2017. You forgot to record the payment of the premium. Also in your files, you found the invoice for the purchase of an adjustable height table on September 14. The table allows you to place a lawn mower or snow blower on it and adjust the working height so that you are more comfortable and don't injure your back. You paid the $1,250 cost as soon as the table was delivered. Similar to the amount paid for the insurance policy, you forgot to record the purchase. . . After talking to his cousin who owns Jake's Tool Repair, you estimated that the equipment purchased on September 11 as well as the adjustable table will last 8 years. You also remembered that the supplier of the computer equipment purchased on September 9 advised you could expect to use it for 5 years before it will require replacement. You decided that you will record a full month of depreciation if an asset is used at any time during the month. On December 31, you received a $500 down payment from a client on a major overhaul of three machines to be done in 2017. Also on December 31, you paid the interest owing on the bank loan payable. Although the bank originally required interest be paid on the last day of every month, it later agreed to allow the first interest payment to be made on December 31. Late in the day on December 31, you received a phone call from a client. It was snowing and the client needed his snow blower fixed so he could clear his walks for a New Year's Eve function. You finished the order just in time to get it to the client for dinner. The client will pay $450 for the work in January 2017. After you completed the New Year's Eve emergency repair, you counted the inventory of parts, oils etc. The inventory remaining totaled $750. Before you finished preparing and posting the adjusting entries, you received the utility bills for the period from September to December 2016. The business portion of the utility bills totaled $235 and will be paid in January 2017 Based on the profit before income tax for the period ended December 31, 2016, you expect to pay Canada Revenue Agency $3,500 in corporate income tax . Tasks 1. You decided to prepare the adjusting entries in good form) required due to the additional Information provided above. 2. After preparing the adjusting entries, you then decided to post the adjustments to T accounts 3. Lastly, using the account balances determined in task 2. you sat down to prepare the December 31, 2016 adjusted trial balance BUS 285 - Lab 2 Part 1 Summer 2020 In the second week of BUS 285, you learned about the accounting information system and need to analyze the transactions which Economy Small Engine Repair entered into to determine if they affect the accounting equation. After doing so, you know that it is necessary to journalize the transactions that affect the accounting equation and prepare a trial balance. The following are the transactions Economy Small Engine Repair (ESER) entered into from September 1 to December 31, 2016: On September 1, Bob invested $5,000 of his savings in ESER in return for common shares. Bob's sister was interested in helping get him started so on September 9, she invested $3,000 in Economy Small Engine Repair in return for common shares. Also on September 9, Bob purchased and paid $2,500 for the computer equipment necessary to run ESER. The supplier of the computer equipment advised you can expect to use it for 5 years before it will require replacement. On September 11, you purchased repair equipment including work benches, shelving. various specialty tools and the analyzer you were trying to decide how to account for last week. The total cost of the equipment (not including the analyzer) was $4,750 and payment was due October 15. On September 12, you purchased the inventory (parts, oils and cleaners, etc.) necessary to make engine repairs. As ESER is a new business, none of the parts supply businesses would extend credit. Therefore, you had to pay the $2,500 at the time you picked up the inventory items. On October 1, you borrowed $5,000 from the Royal Bank. The loan is to be repaid on October 1, 2017. Interest is charged on the outstanding balance at a rate of 4% per year and is due on the last day of every month. On October 14, you paid $250 to have posters printed advertising Eser's products. On October 15, you paid the amount due for the purchase of the repair equipment from September 11. On November 27, Bob hired a friend to help with the busy early winter snow blower season. His friend started work on December 7. On December 31, Bob paid his friend $900 for the hours worked in December. Total cash sales for September to December 31 were $14,900. Economy Small Engine Repair also provided repairs to a couple of commercial accounts that he had managed to obtain. These sales totaled $2,900 and although they have been billed, payment was not received until January 2017. On December 31, you received a cheque for $750. The cheque was a payment for repairs of a commercial client. A note attached to the cheque stated that the business thought it . would make payment earlier than the January 2016 due date as the owner remembers how difficult the first few months of running a new business can be. Tasks 1. You decided to journalize the transactions described above (in good form). You remember your instructor telling you that means the journal entries must be dated, properly formatted and must include a brief explanation for each transaction. If a transaction did not affect the accounting equation and should not be journalized as a result, you decided to note that no journal entry was necessary as a reminder to yourself. 2. After journalizing the transactions for September 1 to December 31, 2016, you then decided to post the transactions to Taccounts. 3. Lastly, using the account balances determined in task 2, you sat down to prepare the December 31, 2016 trial balance. BUS 285 - Lab 2 Part 2 Summer 2020 It is December 31, 2016 and Bob wants to know how well this is going and at this point he has more or less hired you to do his books and statements. In BUS 285, your instructor advised that a business can choose to have its year end at any point during the year. However, you also remember your instructor commenting that filing a corporate tax return is more straightforward if a business has a December 31 yearend. Since you have not yet taken BUS 384 Introduction to Taxation for Business Decisions, you decided to tell Bob that Economy Small Engine Repair (ESER) should have a December 31 yearend and he agrees. Since he incorporated ESER and started business on September 1, 2016, the first set of financial statements will be prepared for a 4-month period. After journalizing the transactions that occurred between September 1 and December 31, 2016, you prepared the following unadjusted trial balance as at December 31, 2016: Economy Small Engine Repair Ltd. Unadjusted Trial Balance December 31, 2016 Account Name Cash $14,950 Accounts receivable 2,150 Inventory 2,500 Repair equipment 4,750 Computer equipment 2,500 Accounts payable $0 Bank loan payable 5,000 Common shares 8,000 Revenue 17,800 Parts expense 2,800 Advertising expense 250 Salaries expense 900 $30,800 $30,800 You also gathered the following additional information: In your files, you came across ESER's insurance policy. The $1,200 premium was paid on September 9. The policy provides insurance protection from September 1, 2016 to August 31, 2017. You forgot to record the payment of the premium. Also in your files, you found the invoice for the purchase of an adjustable height table on September 14. The table allows you to place a lawn mower or snow blower on it and adjust the working height so that you are more comfortable and don't injure your back. You paid the $1,250 cost as soon as the table was delivered. Similar to the amount paid for the insurance policy, you forgot to record the purchase. After talking to his cousin who owns Jake's Tool Repair, you estimated that the equipment purchased on September 11 as well as the adjustable table will last 8 years. You also remembered that the supplier of the computer equipment purchased on September 9 advised you could expect to use it for 5 years before it will require replacement. You decided that you will record a full month of depreciation if an asset is used at any time during the month. On December 31, you received a $500 down payment from a client on a major overhaul of three machines to be done in 2017. Also on December 31, you paid the interest owing on the bank loan payable. Although the bank originally required interest be paid on the last day of every month, it later agreed to allow the first interest payment to be made on December 31. Late in the day on December 31, you received a phone call from a client. It was snowing and the client needed his snow blower fixed so he could clear his walks for a New Year's Eve function. You finished the order just in time to get it to the client for dinner. The client will pay $450 for the work in January 2017. After you completed the New Year's Eve emergency repair, you counted the inventory of parts, oils etc. The inventory remaining totaled $750. Before you finished preparing and posting the adjusting entries, you received the utility bills for the period from September to December 2016. The business portion of the utility bills totaled $235 and will be paid in January 2017. Based on the profit before income tax for the period ended December 31, 2016, you expect to pay Canada Revenue Agency $3,500 in corporate income tax. Tasks 1. You decided to prepare the adjusting entries (in good form) required due to the additional information provided above. 2. After preparing the adjusting entries, you then decided to post the adjustments to T accounts. 3. Lastly, using the account balances determined in task 2, you sat down to prepare the December 31, 2016 adjusted trial balance. BUS 285 - Lab 2 Part 1 Summer 2020 In the second week of BUS 285, you learned about the accounting information system and need to analyze the transactions which Economy Small Engine Repair entered into to determine if they affect the accounting equation. After doing so, you know that it is necessary to journalize the transactions that affect the accounting equation and prepare a trial balance. . The following are the transactions Economy Small Engine Repair (ESER) entered into from September 1 to December 31, 2016: On September 1, Bob invested $5,000 of his savings in ESER in return for common shares. Bob's sister was interested in helping get him started so on September 9, she invested $3,000 in Economy Small Engine Repair in return for common shares. Also on September 9, Bob purchased and paid $2,500 for the computer equipment necessary to run ESER. The supplier of the computer equipment advised you can expect to use it for 5 years before it will require replacement. On September 11, you purchased repair equipment including work benches, shelving, various specialty tools and the analyzer you were trying to decide how to account for last week. The total cost of the equipment (not including the analyzer) was $4,750 and payment was due October 15. On September 12, you purchased the inventory (parts, oils and cleaners, etc.) necessary to make engine repairs. As ESER is a new business, none of the parts supply businesses would extend credit. Therefore, you had to pay the $2,500 at the time you picked up the Inventory items. On October 1, you borrowed $5,000 from the Royal Bank. The loan is to be repaid on October 1, 2017. Interest is charged on the outstanding balance at a rate of 4% per year and is due on the last day of every month. On October 14, you paid $250 to have posters printed advertising ESER's products. On October 15, you paid the amount due for the purchase of the repair equipment from September 11 On November 27, Bob hired a friend to help with the busy early winter snow blower season. His friend started work on December 7. On December 31, Bob paid his friend 9900 for the hours worked in December Total cash sales for September to December 31 were $14,900. Economy Small Engine Repair also provided repairs to a couple of commercial accounts that he had managed to obtain. These sales totaled $2,900 and although they have been billed, payment was not received until January 2017 On December 31, you received a cheque for $750. The cheque was a payment for repairs of a commercial dient. A note attached to the cheque stated that the business thought it . would make payment earlier than the January 2016 due date as the owner remembers how difficult the first few months of running a new business can be. Tasks 1. You decided to journalize the transactions described above (in good form). You remember your instructor telling you that means the journal entries must be dated, properly formatted and must include a brief explanation for each transaction. If a transaction did not affect the accounting equation and should not be journalized as a result, you decided to note that no journal entry was necessary as a reminder to yourself. 2. After journalizing the transactions for September 1 to December 31, 2016, you then decided to post the transactions to T accounts. 3. Lastly, using the account balances determined in task 2, you sat down to prepare the December 31, 2016 trial balance. BUS 285 - Lab 2 Part 2 Summer 2020 It is December 31, 2016 and Bob wants to know how well this is going and at this point he has more or less hired you to do his books and statements. In BUS 285, your instructor advised that a business can choose to have its year end at any point during the year. However, you also remember your instructor commenting that filing a corporate tax return is more straightforward if a business has a December 31 yearend. Since you have not yet taken BUS 384 Introduction to Taxation for Business Decisions, you decided to tell Bob that Economy Small Engine Repair (ESER) should have a December 31 yearend and he agrees. Since he incorporated ESER and started business on September 1, 2016, the first set of financial statements will be prepared for a 4-month period. After journalizing the transactions that occurred between September 1 and December 31, 2016, you prepared the following unadjusted trial balance as at December 31, 2016: Economy Small Engine Repair Ltd. Unadjusted Trial Balance December 31, 2016 Cr. Dr. $14,950 2,150 2,500 4,750 2,500 Account Name Cash Accounts receivable Inventory Repair equipment Computer equipment Accounts payable Bank loan payable Common shares Revenue Parts expense Advertising expense Salaries expense $0 5,000 8,000 17,800 2,800 250 900 $30,800 $30,800 You also gathered the following additional information: In your files, you came across ESER's insurance policy. The $1,200 premium was paid on September 9. The policy provides insurance protection from September 1, 2016 to August 31, 2017. You forgot to record the payment of the premium. . Also in your files, you found the invoice for the purchase of an adjustable height table on September 14. The table allows you to place a lawn mower or snow blower on it and adjust the working height so that you are more comfortable and don't injure your back. You paid the $1,250 cost as soon as the table was delivered. Similar to the amount paid for the insurance policy, you forgot to record the purchase. After talking to his cousin who owns Jake's Tool Repair, you estimated that the equipment purchased on September 11 as well as the adjustable table will last 8 years. You also remembered that the supplier of the computer equipment purchased on September 9 advised you could expect to use it for 5 years before it will require replacement. You decided that you will record a full month of depreciation if an asset is used at any time during the month. On December 31, you received a $500 down payment from a client on a major overhaul of three machines to be done in 2017. Also on December 31, you paid the interest owing on the bank loan payable. Although the bank originally required interest be paid on the last day of every month, it later agreed to allow the first interest payment to be made on December 31. Late in the day on December 31, you received a phone call from a client. It was snowing and the client needed his snow blower fixed so he could clear his walks for a New Year's Eve function. You finished the order just in time to get it to the client for dinner. The client will pay $450 for the work in January 2017. After you completed the New Year's Eve emergency repair, you counted the inventory of parts, oils etc. The inventory remaining totaled $750. Before you finished preparing and posting the adjusting entries, you received the utility bills for the period from September to December 2016. The business portion of the utility bills totaled $235 and will be paid in January 2017 Based on the profit before income tax for the period ended December 31, 2016, you expect to pay Canada Revenue Agency $3,500 in corporate income tax. Tasks 1. You decided to prepare the adjusting entries (in good form) required due to the additional information provided above. 2. After preparing the adjusting entries, you then decided to post the adjustments to accounts. 3. Lastly, using the account balances determined in task 2, you sat down to prepare the December 31, 2016 adjusted trial balance